Balance Sheet Presentation Thiel Company reports the following deferred tax items at the end of 2019: Deferred Tax Item # Account Balance Related Asset or Liability Creating the Deferred Tax Item 1 $6,700 debit     Current asset 2   7,200 credit     Current liability 3  10,600 debit     Noncurrent asset 4  15,500 credit     Noncurrent liability Required: Show how the preceding deferred tax items are reported on Thiel's December 31, 2019, balance sheet. THIEL COMPANYBalance Sheet (Tax Items)December 31, 2019 Noncurrent Liabilities   Deferred Tax as

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.