5Two Temporary Difference, One Rate, Beginning Defered Taxe) The foilowing facts reate to Alschuler Corporation. facts relate 1. Deferred tax liability, January 1, 2010, $40,000. 2. Deferred tax asset, January 1, 2010, s0. 3. Taxable income for 2010, $115,000. 4. Pretax financial income for 2010, $200,000. 5. tive temporary difference at December 31, 2010, giving rise to future taxable amounts, $220 6. Cunulative temporary difference at December 31, 2010, giving rise to future deductibie amounts, 7. 8. $35,000 Tax rate for all years, 40%. The company is expected to operate profitably in the future. Instructions (a) Compute income taxes payable for 2010. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2010. (e) Prepare the income tax expense section of the income statement for 2010, beginning with the lin "Tncome before income taxes