.Beacon Corporation recorded the following deferred tax assets and liabilities
Current deferred tax assets $ 650,000
Current deferred tax liabilities (400,000)
Noncurrent deferred tax assets 1,000,000
Noncurrent deferred tax liabilities (2,500,000)
Net deferred tax assets (liabilities) $(1,250,000)
All of the deferred tax accounts relate to temporary differences that arose as a result of the company's operations and there is no valuation allowance. Which of the following statements describes how Beacon should report these accounts on its balance sheet?
A. Beacon reports a Net deferred tax asset (liability) of $(1,250,000).
B Beacon reports Deferred tax assets, net of valuation allowance in the amount of $1,650,000 ($650,000 + $1,000,000) and Total deferred tax liabilities of ($2,900,000) ($400,000 + $2,500,000)
C. Beacon reports Net current asset of $250,000 [$650,000(current deferred tax assets) - $400,000(current deferred tax liabilities) and
Net current liabilities of $1,500,000 [$1,000,000(noncurrent deferred tax assets) - $2,500,000(noncurrent deferred tax liabilities)
D. Both A and B
