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 $430,000 and a tax basis of $310,000. There were no other temporary differences and no permanent differences. Taxable income was $6 million and Kara's tax rate is 40% What is the deferred tax liability to be reported in the balance sheet? Assuming that the deferred tax liability balance was $39,500 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 Assume that the deferred tax liability balance was $39,500 the previous year. Prepare the appropriate journal entry to record income taxes this year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in whole dollars.) General Journal Credit No Event 11 Debit 2,448,000 X Income tax expense Deferred tax liability Income tax payable 48,000 X 2,400,000