The differences between the book basis and tax basis of the assets and liabilities of Morgan Corporation at the end of 2015 are presented below.

	Book Basis	Tax Basis
Accounts receivable	$50,000	$0
Litigation liability	20,000	0

It is estimated that the litigation liability will be settled in 2016. The difference in accounts receivable will result in taxable amounts of $30,000 in 2016 and $20,000 in 2017. The company has taxable income of $300,000 in 2015 and is expected to have taxable income in each of the following 2 years. Its enacted tax rate is 34% for all years. This is the company's first year of operations.

Income Tax Payable = 300000*34% = 102000

Deferred Tax Asset =20000*34% = 6800

Deferred Tax Liability =50000*34% = 17000

Income Tax Expenses =102000+17000 -6800= 112200

Date	Account Title	Debit	Credit
2015	Income Tax Expenses	112200
Deferred Tax Asset	6800
Income Tax Payable	102000
Deferred Tax Liability	17000

*Indicate how deferred income taxes will be reported on the statement of financial position at the end of 2015.?*