Question

As of December 31, 2024, Lange Company has the following deferred tax assets and liabilities: Deferred tax assets Pension plans $ 300,000 Inventory 200,000 Total deferred tax assets $ 500,000 Deferred tax liabilities Property, plant and equipment $ 100,000 Gain on equity investments (unrealized) 350,000 Total deferred tax liabilities $ 450,000 Required: 1. Assume that all of Lange's deferred tax assets and liabilities are in the same tax jurisdiction. How would deferred taxes be shown on Lange's balance sheet? 2. Assume that the deferred tax effects of Lange's pension plans and unrealized gains on investments occurred in a different tax jurisdiction from Lange's other deferred tax effects. How would deferred taxes be shown on Lange's balance sheet?

          As of December 31, 2024, Lange Company has the following deferred tax assets and liabilities:

Deferred tax assets
Pension plans $ 300,000
Inventory 200,000
Total deferred tax assets $ 500,000
Deferred tax liabilities
Property, plant and equipment $ 100,000
Gain on equity investments (unrealized) 350,000
Total deferred tax liabilities $ 450,000

Required:

1. Assume that all of Lange's deferred tax assets and liabilities are in the same tax jurisdiction. How would deferred taxes be shown on Lange's balance sheet?
2. Assume that the deferred tax effects of Lange's pension plans and unrealized gains on investments occurred in a different tax jurisdiction from Lange's other deferred tax effects. How would deferred taxes be shown on Lange's balance sheet?

As of December 31, 2024, Lange Company has the following deferred tax assets and liabilities:

Deferred tax assets
Pension plans 300,000
Inventory 200,000
Total deferred tax assets 500,000
Deferred tax liabilities
Property, plant and equipment 100,000
Gain on equity investments (unrealized) 350,000
Total deferred tax liabilities 450,000

Required:

1. Assume that all of Lange's deferred tax assets and liabilities are in the same tax jurisdiction. How would deferred taxes be shown on Lange's balance sheet?
2. Assume that the deferred tax effects of Lange's pension plans and unrealized gains on investments occurred in a different tax jurisdiction from Lange's other deferred tax effects. How would deferred taxes be shown on Lange's balance sheet?

Added by Tracey S.

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