Your answer is partially correct. Try again At December 31, 2016, Sweet Company had a net deferred tax liability of $366,900. An explanation of the items that compose this balance is as follows Temporary Differences Resulting Balances in Deferred Taxes 1Excess of tax depreciation over book depreciation 184,300 Accrual, for book purposes, of estimated loss contingency from pending lawsuit that is expected to be settled in 2017. The loss will be deducted on the tax return when paid (51,800) 3. Accrual method used for book purposes and installment method used for tax purposes for arn isolated installment sale of an investment. 234,400 $366,900 In analyzing the temporary differences, you find that $29,800 of the depreciation temporary difference will reverse in 2017, and $128,400 of the temporary difference due to the installment sale will reverse in 2017 The tax rate for all years is 40% Indicate the manner in which deferred taxes should be presented on Sweet Company's December 31, 2016, balance sheet Sweet Company's Balance Sheet Deferred Tax Liability 367,340 SHOW LIST OF ACCOUNTS SHOW SOLUTION