Alvis Corporation reports pretax accounting income of $560,000, but due to a single temporary difference, taxable income is only $370,000. 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?

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

Balance Sheet (partial)
Account Reported	Amount