Question 4 Your answer is partially correct. At December 31,2016, Ivanhoe Company had a net deferred tax liability of $373,300. An explanation of the items that compose this balance is as follows. Resulting Balances in Deferred Taxes Temporary Differences $215,100 1 Excess of tax depreciation over book depreciation 2 Accrual, for book purposes, of estimated loss contingency from pending lawsuit that is expected to besettled in 2017.The lass will be deducted on the tax return when paid. 3. Accrual method used for book purposes and installment method used for tax purposes for an isolated installment sale of an investment (54,700) 212,900 $373,300 In analyzing the temporary differences, you find that $32,800 of the depreciation temporary difference will reverse in 2017, and $131,100 of the temporary difference 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 lvanhoe Company's December 31,2016, balance sheet Ivanhoe Company's Balance Sheet December 31, 2016 Long-term Investments Deferred Tax Liability 375900