Balance Sheet Classification
Example: The Blueberry Pie Company operates in two tax jurisdictions and presents an unclassified B/S. Deferred tax accounts relating to each jurisdiction at the end of the current year are as follows:
Jurisdiction 1 Jurisdiction 2
Deferred tax assets $60,000 $8,900
Valuation Allowance (28,000) (7,900)
Deferred Tax Liabilities 8,000 4,000
Deferred taxes would be presented on the B/S as follows:
Deferred tax assets: $24,000; Deferred tax liabilities: $3,000