Exercise 19-9 At December 31, 2018, Cheyenne Company had a net darfered tax lobility or $36,500. An esplanation of thktems thut compouse ts blance s as folows Resulting Balances in Deferred Taxes 1. Excess of tax depredation over book depreciation 2. Accrual, for book purposes, of estimated loss contingency from pending $186,400 lawsult that is expected to be settied in 2017. The loss will be deducted on the tax return when paid (53,600 ) 3. Accrual method used for book purposes and installment method used for tax purposes for an isolated instalment sale of an investment 203,700 $336,500 In analyzing the temporary differences, you find that $27,100 of the depreciation termporary reverse in 2017, The tax rate for all years is 40%. difference will reverse in 2017, and $126,700 of the temporary difference due to the instalment sale will Indicate the manner in which deferred taxes should be presented on Cheyenne Company's December 31, 2016, balance sheet Balance Sheet Cick if you would like to Show Work for this question: Open Show Work