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 $6,300 debit Current asset 2 7,800 credit Current liability 3 10,500 debit Noncurrent asset 4 15,300 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 $- Select -
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 $6,300 debit Current asset 2 7,800 credit Current liability 3 10,500 debit Noncurrent asset 4 15,300 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 $- Select -
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Thiel Company reports the following
| Deferred Tax Item # |
Account Balance |
Related Asset or Liability Creating the Deferred Tax Item |
|
|---|---|---|---|
| 1 | $6,300 | debit | Current asset |
| 2 | 7,800 | credit | Current liability |
| 3 | 10,500 | debit | Noncurrent asset |
| 4 | 15,300 | credit | Noncurrent liability |
Required:
Show how the preceding deferred tax items are reported on Thiel's December 31, 2019,
THIEL COMPANYBalance Sheet (Tax Items)December 31, 2019
| Noncurrent Liabilities | |
|
|
$- Select - |
Expert Solution
Step 1
Income tax actual paid and income tax expenses some time differ because of deferred income tax.
Deferred income tax comes in books of accounts where there is a difference between accounting income and taxable income due to temporary difference.
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