Question

Brady's listing of deferred tax assets and liabilities includes the following for operations in the tax jurisdictions of Tambura and Nileboo:

Tambura:
Deferred tax asset of $19 million
Valuation allowance of $16 million
Deferred tax liability of $28 million
Nileboo:
Deferred tax asset of $60 million
Deferred tax liability of $17 million
Brady files separate tax returns in Tambura and Nileboo. Brady’s balance sheet would include the following disclosure of deferred tax assets and liabilities:_______.

Answer 1

Answer: Deferred tax liability of $25 million in Tambura and Deferred tax asset of $43 million in Nileboo.

Step-by-step explanation:

Tambura

Deferred tax asset $ 19 million

Less: Valuation allowance ( $ 16 million)

Net deferred tax asset $ 3 million

Less Deferred tax liability ($ 28 million)

Deferred tax liability $25 million

Nileboo

Deferred tax asset $ 60 million

Less: Deferred tax liability ( $ 17 million)

Deferred tax asset $43 million