Which of the following statements concerning the classification of deferred tax assets and liabilities is true?

Multiple Choice

• A deferred tax asset is classified as noncurrent only if the company expects the future tax benefit to be received more than 12 months from the balance sheet date.

• All deferred tax assets and liabilities are treated as noncurrent.

• A deferred tax asset related to a bad debt reserve is classified as current if the related accounts receivable is classified as a current asset.

• A deferred tax asset related to inventory capitalization is classified as noncurrent only if the company uses a FIFO accounting method and the inventory to which the deferred tax asset relates will not be treated as sold within 12 months from the balance sheet date.