Alvis Corporation reports pretax accounting income of $520,000, but due to a single temporary difference, taxable income is only $340,000. At the beginning of the year, no temporary differences existed. Required: 1. Assuming a tax rate of 25%, what will be Alviss net income? 2. What will Alvis report in the balance sheet pertaining to income taxes?

Balance Sheet
Account Reported	Amount

Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 45% of cost in 2021, 30% in 2022, and 25% in 2023. Pretax accounting income for 2021 was $460,000, which includes interest revenue of $68,000 from municipal governmental bonds. The enacted tax rate is 25%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2021. 2. What is Southern Atlantics 2021 net income?

			Tax Rate %		Tax $	Recorded as:
Pretax accounting income	$460,000
Permanent difference
Income subject to taxation	$460,000	x
Temporary difference		x		=
Income taxable in current year	$460,000	x		=