Question
Indigo Corporation has temporary differences at December 31, 2017, that result in the following deferred taxes. Deferred tax liability related to depreciation difference $38,000 Deferred
Indigo Corporation has temporary differences at December 31, 2017, that result in the following deferred taxes.
Deferred tax liability related to depreciation difference
$38,000
Deferred tax asset related to warranty liability
57,400
Deferred tax liability related to revenue recognition
93,600
Deferred tax asset related to litigation accruals
27,800
Indicate how these balances would be presented in Indigo's December 31, 2017, balance sheet.
Note: I have looked at numerous problems like this on the internet to get an explination and formula but when I use the formula, the answer is always incorrect. Thank you for your help.
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