Balance Sheet Classification

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• This approach represents a change form FASB #96.
  • Previously the tax expense allocated to operations would’ve been at the 34% rate and the balance would’ve been assigned to the gain (the incremental approach).

• Balance Sheet Classification

  • When an unclassified B/S is presented (i.e., no segregation of current and noncurrent amounts) deferred tax liabilities and assets are combined and reported as a single amount (by jurisdiction only).

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