Kara Fashions uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. Three years after its purchase, one of Karas 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 Karas 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 $32,000 the previous year, prepare the appropriate journal entry to record income taxes this year.

Enter answer in whole dollars.

(I got $8000 already and typed that in but it says it is wrong so maybe i am doing something wrong or typing it in wrong. thanks in advance.)