INTERMEDIATE FINANCIAL ACCOUNTING (ACCT 221/1312/ Gradebook ORION Downloadable eTextbook 'rnent At December 31, 2016, Waterway Company had a net deferred tax liability of $366,800. An explanation of the items that compose this balance is as follows. CALCLATOR FULL SCKEEN PRINTER VERSION BACK Resulting Balances in Deferred Taxes Temporary Differences 1. Excess of tax depreiation over book deprecdiation 2. Accrual, for book purposes, of estimated loss contingency from pending $184,100 lawsuit that is eed in 2017. The lass ll uctedon the tax return when paid. Accrual method used for book purposes and installment method used for tax purposes for an isolated installment sale of an investment (50,500 ) 3. 233,200 $366,800 In analyzing the temporary differences, you find that $29,700 of the depreciation temporary difference will reverse in 2017, and $106,600 of the tomporary dfference due to the installment sale will reverse in 2017, The tax rate for all years is 40%. Indicate the manner in which deferred taxes should be presented on Waterway Company's December 31, 2016, balance sheet Waterway Company's Balance Sheet Daferred Tax Liability Click if you would like to Show Work for this question: Q0en Sho onk Versiee 424.5 SHOW LUST OF ACCOUNTS All Rights Reserved. A Divsise of 2ahn Wile