Knowledge Check 01 Javelin Company has a deferred tax liability of $6 million, a deferred tax asset of $3 million, and a valuation allowance of $1 million. These deferred tax accounts relate to the same tax-paying component of the company and the same tax jurisdiction. Which of the following describes how these accounts are shown in the balance sheet?

• A net current deferred tax liability of $4 million.

• A net noncurrent deferred tax liability of $4 million.

• A noncurrent deferred tax liability of $6 million and a noncurrent tax asset of $3 million.

• A noncurrent deferred tax liability of $6 million and a noncurrent tax asset of $2 million.