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Alvis Corporation reports pretax accounting income of $400,000, but due to a single temporary difference,taxable income is only $250,000. At the beginning of the year,

Alvis Corporation reports pretax accounting income of $400,000, but due to a single temporary difference,taxable income is only $250,000. At the beginning of the year, no temporary differences existed.

Required:

1). Assume a tax rate of 35%, what will be Alviss net income?

Net income = ??

2). What will Alvis report in the balance sheet pertaining to income taxes?

Balance Sheet

Account Reported Amount

?? ??

?? ??

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