At December 31, 2020, Cascade Company had a net deferred tax liability of $450,000. An explanation of the items that compose this balance is as follows. Temporary Differences in Deferred Taxes Resulting Balances 1. Excess of tax depreciation over book depreciation. $200,000 2. Accrual, for book purposes, of estimated loss contingency from pending lawsuit that is expected to be settled in 2021. The loss will be deducted on the tax return when paid. $ (50,000) 3. Accrual method used for book purposes and installment method used for tax purposes for an isolated installment sale of an investment. $300,000 In analyzing the temporary differences, you find that $30,000 of the depreciation temporary difference will reverse in 2021, and $120,000 of the temporary difference due to the installment sale will reverse in 2021. The tax rate for all years is 40%. Instructions Indicate the manner in which deferred taxes should be presented on Cascade Company's December 31, 2020, statement of financial position.
At December 31, 2020, Cascade Company had a net
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