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 $340,000 and a tax basis of $220,000. There were no other temporary differences and no permanent differences. Taxable income was $6 million and Kara's tax rate is 30%. 1-1. What is the deferred tax liability to be reported in the balance sheet? (Enter your answer in whole dollars.) Deferred tax liability 1-2. Assume that the deferred tax liability balance was $27,200 the previous year. Prepare the appropriate journal entry to record income taxes this year. (If no entry is required for a particular event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record income tax expense