Question

At December 31, 2018, Moonlight Bay Resorts had the following deferred income tax items: Deferred tax asset of $54 million related to a current liability Deferred tax asset of $36 million related to a noncurrent liability Deferred tax liability of $120 million related to a noncurrent asset Deferred tax liability of $72 million related to a current asset Moonlight Bay should report in its December 31, 2018, balance sheet a:

Answer 1

Net deferred tax liability in non current liabilities = $84 million

Net deferred tax liability in current liabilities = $18 million

Step-by-step explanation:

Deferred tax that is deferred tax asset or deferred tax liability can only be sett off against each other only when the tax in asset or tax in liabilities is to be paid to same tax authority.

Thus, here assuming these are paid to same authority of taxes, thus these are sett off.

In the given case,

Deferred tax asset for current liability = $54 million

Deferred tax liability for current asset = $72 million

Net deferred tax liability in current liabilities = $18 million = (72 - 54)

Deferred tax asset for non current liability = $36 million

Deferred tax liability for non current asset = $120 million

Net deferred tax liability in non current liabilities = $84 million

Final Answer

Net deferred tax liability in non current liabilities = $84 million

Net deferred tax liability in current liabilities = $18 million