At December 31, 2016, Sunland Company had a net deferred taxliability of $432,000. An explanation of the items that compose this balance is as follows. Temporary Differences. 1. Excess of tax depreciation over book depreciation Resulting Balances in Deferred Taxes $205,000 2. Accrual, for book purposes, of estimated loss contingency from pending law suit that is expected to be settled in 2017. The loss will be deducted on the tax return when paid. (30,000) 3. Accrual method used for book purposes and installment method used fortax purposes for an isolated installment sale of an investment. 257,000 $432,000 In analyzing the temporary differences, you find that $66,000 of the depreciation temporary difference will reverse in 2017, and $148,000 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 Sunland's December 31, 2016, balance sheet. Sunland Company Balance Sheet December 31, 2016 T Total Current Liabilities Deferred Tax Liability