At the end of 2012, ABC Company has cumulative temporary differences that will result in reporting future taxable amounts as follows: 2013 $ 65,000 2014 $ 35,000 2015 $ 45,000 2016 $ 25,000 Tax rates enacted as of the beginning of 2011 are: 2011 and 2012 20% 2013 and 2014 25% 2015 and later 38% ABC s taxable income for 2012 is: $480,000 Taxable income is expected in all future years. Assume that the balance of Deferred Tax Liability account at the end of 2011 was: $48,000

Prepare the journal entry for ABC to record income taxes payable, deferred income taxes, and income tax expense for 2012.