Brief Exercise 16-3 (Algo) Temporary difference; determine taxable income; determine deferred tax amount for asset 100% depreciated in year of purchase (LO16-2] Milo Manufacturing uses straight-line depreciation for financial statement reporting and is able to deduct 100% of the cost of equipment in the year the equipment is purchased for tax purposes. Four years after its purchase, one of Milo's manufacturing machines has a book value of $1,000,000. There were no other temporary differences and no permanent differences. Taxable income was $31 million and Milo's tax rate is 25%. What is the deferred tax liability to be reported in the balance sheet? Assuming that the deferred tax liability balance was $267,000 the previous year, prepare the appropriate journal entry to record income taxes this year. Complete this question by entering your answers in the tabs below. Balance Sheet General Journal What is the deferred tax liability to be reported in the balance sheet? (Enter your answer in whole dollars.) Deferred tax liability Balance Sheet General Journal >