Darrell Corporation reports under IFRS. At December 31, 2020, the company had a net deferred tax liability of $402,000. An explanation of the items that make up this balance follows: 

Instructions 

a. Indicate how deferred tax should be presented on Darrell Corporation's December 31, 2020 SFP. 

b. How would your response to part (a) change if Darrell Corporation followed the ASPE future/deferred income taxes method?

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Temporary Differences Resulting Balances in Deferred Tax Account 1. Excess of accumulated tax depreciation over book depreciation $275,000 2. Accrual, for book purposes, of estimated loss contingency from pending lawsuit that is expected to be settled in 2021. The loss will be deducted on the tax return when it is paid. (91,000) 3. Accrual method (account receivable) used for book purposes and instalment method used for tax purposes for an isolated instalment sale of an investment, due in 2022 218,000 $402,000