CSCC Corporation recorded the following deferred tax assets and liabilities: Current deferred...

Question

CSCC Corporation recorded the following deferred tax assets and liabilities:

Current deferred tax assets $	500,000
Current deferred tax liabilities	(600,000)
Non-current deferred tax liabilities	800,000
Net deferred tax liabilities	(2,000, 000)
$	(1,3000,000)

All of the deferred tax accounts relate to temporary differences that result from the company's U.S. operations. CSCC wants to minimize the number of deferred tax accounts it reports on the balance sheet. What are the minimum number of deferred tax accounts CSCC can report on its balance sheet and what are the names and dollar amounts in each account? Explain how you came up with your answer. Please provide a description of how you would explain the meaning of these accounts and their final resolution to the client.

Hint: Please use ASC 740 requirements for business entities to net deferred tax assets and deferred tax liabilities when reporting on balance sheet to explain.

Robert · Accepted Answer

ASC 740 requires a company to Net Off its Deferred Tax Asset and Deferred Tax Liabilities by 
their Current or Non-Current nature that arise in the same jurisdiction. Therefore Beacon here is 
required to net the current deferred tax accounts and the non-current tax accounts and report a net 
current deferred tax liability of $100,000 (600,000-500,

CSCC Corporation recorded the following deferred tax assets and liabilities: Current deferred tax assets $ 500,000 Current deferred tax liabilities (600,000) Non-current deferred tax liabilities...

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