Kara Fashions uses straight$-$line depreciation for financial statement reporting and MACRS for income tax reporting. Three years after its purchase, one of Kara$$s buildings has a book value of $$400,000$ and a tax basis of $$300,000.$ There were no other temporary differences and no permanent differences. Taxable income was $$4$ million and Kara$$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 $$20,000$ the previous year, prepare the appropriate journal entry to record income taxes this year.