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At December 31, 2016, Belmont Company had a net deferred tax liability of $375, 000. An explanation of the items that compose this balance is
At December 31, 2016, Belmont Company had a net deferred tax liability of $375, 000. An explanation of the items that compose this balance is as follows. In analyzing the temporary differences you find that $30, 000 of the depreciation temporary difference will reverse in 2017, and $120, 000 of the temporary difference due to the installment sale will reverse in 2017. The tax rate for all years is 40%. Instructions Indicate the manner in which deferred taxes should be presented on Belmont Company's December 31, 2016, balance sheet
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