Deferred tax liabilities and deferred tax assets must be reported on the balance sheet.
Required:
Explain the process of classifying and reporting deferred tax liabilities and deferred tax assets.

A corporation must report its deferred tax liabilities and assets in two classifications: a net current amount and a net noncurrent amount.A corporation must: (1)separate its deferred tax liabilities into current and noncurrent groups, (2)separate its deferred tax assets into current and noncurrent groups, (3)combine (net)the amounts in the current groups, and (4)combine (net)the amounts in the noncurrent groups.If either group has a net debit balance, it is reported as a deferred tax asset, and if either group has a net credit balance, it is reported as a deferred tax liability.