Problem
Bonita Corporation began operations in 2020 and reported pretax financial income of $210,000 for the year. Bonita's tax depreciation exceeded its book depreciation ½y $34,000. Bonita's tax rate for 2020 and years thereafter is 30%. Assume this is the only difference between Bonita's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. Show how the deferred tax liability will be classified on the December 31, 2020, balance sheet.
Deferred tax liability should be classified as a ___________ on the December 31, 2020, balance sheet.