ABC Company uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. Three years after its purchase, one of ABC's building has a book value of $400,000 and a tax basis of $300,000. There were no other temporary differences and no permanent differences. Taxable income was $4 million and ABC s tax rate is 25%. What is the deferred tax liability to be reported in the balance sheet? Assuming that the deferred tax liability balance was $20,000 the previous year, prepare the appropriate journal entry to record income taxes this year