Crystal Critters, Inc Assuming It Meets the Conditions to Net Assets and Liabilities

question 60

Multiple Choice

Crystal Critters, Inc., a U.S. GAAP reporter, has the deferred tax assets and liabilities presented below: $\begin{array}{|c|c|c|}\hline \text { Item } & \begin{array}{l}\text { Classification on the } \\\text { Balance Sheet of } \\\text { Related Account }\end{array} & \begin{array}{c}\text { Deferred Tax } \\\text { Associated with Item }\end{array} \\\hline \begin{array}{l}\text { Excess of warranty expense over } \\\text { warranty deductions }\end{array} & \text { Current } & \$ 74,000 \text { Asset } \\\hline \begin{array}{l}\text { Accelerated depreciation for tax } \\\text { purposes }\end{array} & \text { Noncurrent } & \$ 84,000 \text { Liability } \\\hline \text { nstallment sales receivable } & \text { Current } & \$ 44,000 \text { Liability } \\\hline \text { Contingent liability } & \text { Current } & \$ 34,000 \text { Asset } \\\hline\end{array}$

Assuming it meets the conditions to net assets and liabilities, how will the company report deferred taxes on the balance sheet?

• A) current liability: deferred tax liability $64,000; noncurrent liability: deferred tax liability $84,000
• B) noncurrent liability: deferred tax liability $20,000
• C) current asset: deferred tax asset $108,000; noncurrent liability: deferred tax liability $128,000
• D) current liability: deferred tax liability $44,000; noncurrent asset: deferred tax asset $84,000

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Definitions:

Actual Self

The representation of the attributes someone or others believe the person actually possesses.

'Voice' Behaviour

Expressive and assertive communication of ideas, opinions, and feelings intended to improve conditions.

'Exit' Behaviour

Actions taken by individuals to leave or disassociate from a group or social setting, often as a way to express dissatisfaction or to avoid conflict.

Relationship Deterioration

The process in which a relationship between individuals worsens over time, leading to negative outcomes or dissolution.