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 $720,000 and a tax basis of $540,000. There were no other temporary differences and no permanent differences. Taxable income was $6 million and Karas 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 $28,000 the previous year, prepare the appropriate journal entry to record income taxes this year.

Deferred Tax Liability:

Assuming that the deferred tax liability balance was $28,000 the previous year, prepare the appropriate journal entry to record income taxes this year.

What is the General Journal Entry?