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 $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 Karas tax rate is 40%. 1-1. What is the deferred tax liability to be reported in the balance sheet? (Enter your answer in whole dollars.) 1-2. Assume that the deferred tax liability balance was $39,500 the previous year. Prepare the appropriate journal entry to record income taxes this year.