In 2006, Rand, Inc. reported for financial statement purposes the following items, which were not included in taxable income:
|
Installment gain to be collected equally in 2007 through 2009 |
$1,500,000 |
|
Estimated future warranty costs to be paid equally in 2007 through 2009 |
2,100,000 |
There were no temporary differences in prior years. Rand’s enacted tax rates are 30% for 2006 and 25% for 2007 through 2009.
In Rand’s December 31, 2006 balance sheet, what amounts of the deferred tax asset should be classified as current and noncurrent?
|
Current |
Noncurrent |
|
|
a. |
$60,000 |
$100,000 |
|
b. |
$60,000 |
$120,000 |
|
c. |
$50,000 |
$100,000 |
|
d. |
$50,000 |
$120,000 |