[Hosmer]

I’m getting questions wrong like this:

Noncurrent deferred tax liability : $75,000
Current deferred tax asset : $25,000

What do you report as concurrent deferred tax liability.

I thought I saw examples where you net the deferred assets and liabilities. I’m sure the rules are simple, I just can’t find a concise summary. Can anyone help me out? FAR tomorrow. So much to remember.

[Ginja_CPA]

You only net the current with current, and noncurrent with noncurrent. Also, on a question like this you have to be careful as they could be asking for just the current deferred tax liability, not what it would be if you needed it with the current deferred tax asset.

REG: 80 (02/19/16)
AUD: 83 (04/11/16)
BEC: 78 (05/28/16)
FAR: ?

[Author]

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