Beacon Corporation recorded the following deferred tax assets and liabilities:

Current deferred tax assets $ 650,000 Current deferred tax liabilities (400,000 ) Noncurrent deferred tax assets 1,000,000 Noncurrent deferred tax liabilities (2,500,000 ) Net deferred tax liabilities $ (1,250,000 )

All of the deferred tax accounts relate to temporary differences that arose as a result of the company's U.S. operations. Which of the following statements describes how Beacon should disclose these accounts on its balance sheet?

Beacon reports a net deferred tax liability of $1,250,000 on its balance sheet.

Beacon nets the deferred tax assets and the deferred tax liabilities and reports a net deferred tax asset of $1,650,000 and a net deferred tax liability of $2,900,000 on its balance sheet.

Beacon can elect to net the current deferred tax accounts and the noncurrent tax accounts and report a net current deferred tax asset of $250,000 and a net deferred tax liability of $1,500,000 on its balance sheet.

Beacon is required to net the current deferred tax accounts and the noncurrent deferred tax accounts and report a net current deferred tax asset of $250,000 and a net deferred tax liability of $1,500,000 on its balance sheet.