Bandit Corporation will be releasing its 2017 calendar-year financial statements in a couple of weeks.

Bandits accounting records include the following deferred tax accounts:

Deferred tax assets: warranties (90 day full replacement warranty) $25,000 accrued interest expense 12,000

Deferred tax liabilities: depreciation of property, plant and equipment 27,400 prepaid lease expense ( for 1st quarter of next year) 34,550

Your accounting supervisor just learned that FASB recently issued a new accounting standard regarding deferred tax reporting but he is unaware of the details. He has asked you to investigate how to report these accounts on the balance sheet.

Required: 1) How should Bandit report these tax accounts on its balance sheet if Bandit is a publicly-held company? (Note: Be sure to illustrate how the above deferred tax accounts would be reported under every available option)

2) How should Bandit report these tax accounts on its balance sheet assuming Bandit is a privately-held company? (Note: Be sure to illustrate how the above deferred tax accounts would be reported under every available option)