Alvis Corporation reports pretax accounting income of $480,000, but due to a single temporary difference, taxable income is only $310,000. At the beginning of the year, no temporary differences existed.

Required:

1. Assuming a tax rate of 35%, what will be Alvis's net income?

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

Net income =_________________________

Balance sheet
Account Reported	Amount