E19.

9 (p19-46)

Resulting

Deferred Tax

Temporary Difference (Asset) Liability

-----------------------------------------------------------------------------------------------

Depreciation $200,000

Lawsuit obligation $(50,000)

Installment sale $225,000

Totals $(50,000) $425,000

Deferred tax asset $50,000

Deferred tax liability 425,000

Net non-current liability (deferred tax liability) $375,000