At December 31, 2016, Larkspur Company had a net deferred tax liability of $369,000. An explanation of the items that compose this balance is as follows.

In analyzing the temporary differences, you find that $31,600 of the depreciation temporary difference will reverse in 2017, and $127,300 of the temporary difference due to the installment sale will reverse in 2017. The tax rate for all years is 40%. Indicate the manner in which deferred taxes should be presented on Larkspur Companys December 31, 2016, balance sheet.

*HELP ME WITH THE RED WRONG PARTS PLEASE

Exercise 19-9 Your answer is partially correct. Try again. At December 31, 2016, Larkspur Company had a net deferred tax liability of $369,000. An explanation of the items that compose this balance is as follows. Resulting Balances in Deferred Taxes 217,104) ,400 1. Excess of tax depreciation over book depreciation 2. Accrual, for book purposes, of estimated loss contingency from pending lawsuit that is expected to be settled in 2017. The loss will be deducted on (52,900) 3. Accrual method used for book purposes and installment method used for tax purposes for an isclated installment sale of an investment. 204,500 an investment,hod In analyzing the temporary differences, you find that $31,600 of the depreciation temporary difference will reverse in 2017, and $127,300 of the temporary difference due to the installment sale will reverse in 2017, Te tax rate for all years is 40% Indicate the manner in which deferred taxes should be presented on Larkspur Company's December 31, 2016, balance sheet. Larkspur Company's Balance Sheet Deferred Tax Liability