Beacon Corporation recorded the following deferred tax assets and liabilities:
Current deferred tax assets.....................$650,000
Current deferred tax liabilities................(400,000)
Non-current deferred tax assets..............1,000,000
Non-current deferred tax liabilities........(2,500,000)
Net deferred tax liabilities................$(1,250,000)
All of the deferred tax accounts relate to temporary differences that arose as a result of the company's U.S. operations. Which of the following statements describes how Beacon should disclose these accounts on its balance sheet?
a. Beacon reports a net deferred tax liability of $1,250,000 on its balance sheet
b. Beacon nets the deferred tax assets and the deferred tax liabilities and reports a net deferred tax asset of $1,650,000 and a net deferred tax liability of $2,900,000 on its balance sheet.
c. Beacon can elect to net the current deferred tax accounts and the non-current tax accounts and report a net current deferred tax asset of $250,000 and a net deferred tax liability of $1,500,000 on its balance sheet.
d. Beacon is required to net the current deferred tax accounts and the non-current tax accounts and report a net current deferred tax asset of $250,000 and a net deferred tax liability of $1,500,000 on its balance sheet.