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Case Background: On Nulife Corporation's 2006 balance sheets is a debt-to-equity ratio of 1.05. This was found by dividing total debt ($5813) by total equity

Case Background: On Nulife Corporation's 2006 balance sheets is a debt-to-equity ratio of 1.05. This was found by dividing total debt ($5813) by total equity ($5524). Total debt, however included a long-term deferred tax liability item ($1160). The company is being questioned as to whether this DTL item should be included in liabilities when calculating the debt-to-equity ratio

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