At December 31 DePaul Corporation had a $16 million balance in its deferred tax

At December 31 DePaul
Corporation had a $16 million balance in its deferred tax asset account
and a $68 million balance in its deferred tax liability account. The
balances were due to the following cumulative temporary differences:1.
Estimated warranty expense $15 million: expense recorded in the year
of the sale; tax-deductible when paid (one-year warranty).2. Depreciation expense $120 million: straight-line in the income statement; MACRS on the tax return.3.
Income from installment sales of properties $50 million: income
recorded in the year of the sale; taxable when received equally over the
next five years.4. Bad debt expense $25 million: allowance method for accounting; direct write-off for tax purposes.Required:Show how any deferred tax amounts should be classified and reported in the December 31 balance sheet. The tax rate is 40%.