Question

Deferred tax amounts that are related to specific assets or liabilities should be classified as current or noncurrent based on

a. their expected reversal dates.
b. their debit or credit balance.
c. the length of time the deferred tax amounts will generate future tax deferral benefits.
d. the classification of the related asset or liability

Answer 1

Deferred tax amounts that are related to specific assets or liabilities should be classified as current or noncurrent based on their expected reversal dates.

Step-by-step explanation:

Deferred tax amounts that are related to specific assets or liabilities should be classified as current or noncurrent based on their expected reversal dates. The expected reversal date refers to the time when the temporary difference between the tax base and the carrying amount of the asset or liability will reverse, resulting in a taxable or deductible amount.