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deferred tax assets in their footnotes. Disney has shown to deduct
the valuation allowance at the bottom of the table, after it has
netted its gross deferred tax assets against its gross deferred tax
4. Disney reports a net deferred tax liability of $679 million. How is this
amount reflected on Disney’s balance sheet?
• Recall that Disney is required to net its current deferred tax assets
against its current deferred tax liabilities, and its long-term deferred
tax assets against its long-term deferred tax liabilities. In doing this,
Disney reports a current deferred tax asset and a long-term
deferred tax liability on its 2009 balance sheet (in millions):
o Current assets: Deferred income taxes:
o Long-term liabilities: Deferred income taxes: $1,819
o Net deferred tax liability (as reported in note): $ 679
5. Speculate as to why Disney reports in its income taxes footnote
“depreciable, amortizable and other property” as a deferred tax liability
rather than a deferred tax asset.
• When a company depreciates an asset more quickly for tax
purposes than for financia...
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- Spring '12
- Balance Sheet, Deferred tax, Generally Accepted Accounting Principles, Income tax in the United States