Alvis Corporation reportspretax accounting incomeof $480,000, but due to a single temporary difference,taxable incomeis only $310,000. At the beginning of the year, no temporary differences existed.

Required:

1.Assuming a tax rate of 25%, what will be Alvis's net income?

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

• Required 1

Assuminga tax rate of25%, what will be Alvis's net income?

Net income

• Required 2

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

Balance SheetAccount ReportedAmount