Question

At December 31, 2021, Moonlight Bay Resorts had the following deferred income tax items: Deferred tax asset of $62 million related to a current liability Deferred tax asset of $40 million related to a noncurrent liability Deferred tax liability of $128 million related to a noncurrent asset Deferred tax liability of $80 million related to a current asset Moonlight Bay should report in its December 31, 2021, balance sheet a: Multiple Choice Noncurrent deferred tax asset of $88,000 and a non-current deferred tax liability of $51 million. Current deferred tax liability of $22 million. Noncurrent deferred tax asset of $102 million and a non-current deferred tax liability of $208million.

Answer 1

Answer:

Moon light Bay Resorts would report in the balance sheet December 31, 2021 ; non current deferred tax asset of $102 million and non current deferred tax liability of $208 million .

Explanation:

From the above question, we are to determine if Moon Light Bay Resorts should report as assets (Current or non current) or liabilities (Current or non current) in its balance sheet as at 31st December, 2021.

The items are also classified in the balance sheet as seen below;

Total deferred tax liability ($128 million + $80 million) = $208 million

(Deferred tax liabilities related to both current or non current assets)

Total deferred tax asset ($62 million + $40 million) = $102 million

The net deferred tax liability = $106 million ($200 million - $102 million)