Eclectic Inc. summarized the following balances related to its December 31 year-end: Account December 31 Deferred tax asset $50,000 Deferred tax liability $42,000 Valuation allowance for deferred tax asset $32,000 On the company's balance sheet on December 31, the company would report A) Noncurrent deferred tax liability of $24,000. B) Noncurrent deferred tax liability of $42,000 and a noncurrent deferred tax asset of $18,000. C) Noncurrent deferred tax asset of $50,000 and a noncurrent deferred tax liability of $82,000. D) Unknown because additional information is required to determine the current asset and liability amounts. Please show your work.
Eclectic Inc. summarized the following balances related to its December 31 year-end: Account December 31 Deferred tax asset $50,000 Deferred tax liability $42,000 Valuation allowance for deferred tax asset $32,000 On the company's balance sheet on December 31, the company would report A) Noncurrent deferred tax liability of $24,000. B) Noncurrent deferred tax liability of $42,000 and a noncurrent deferred tax asset of $18,000. C) Noncurrent deferred tax asset of $50,000 and a noncurrent deferred tax liability of $82,000. D) Unknown because additional information is required to determine the current asset and liability amounts. Please show your work.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Eclectic Inc. summarized the following balances related to its December 31 year-end:
Account December 31
Deferred tax asset $50,000
Deferred tax liability $42,000
Valuation allowance for deferred tax asset $32,000
On the company's balance sheet on December 31, the company would report
A) Noncurrent deferred tax liability of $24,000.
B) Noncurrent deferred tax liability of $42,000 and a noncurrent deferred tax asset of
$18,000.
C) Noncurrent deferred tax asset of $50,000 and a noncurrent deferred tax liability of
$82,000.
D) Unknown because additional information is required to determine the current asset
and liability amounts.
Please show your work.
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