The following facts relate to Alschuler Corporation. 1. Deferred tax liability,

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The following facts relate to Alschuler Corporation. 1. Deferred tax liability, January 1, 2012, $40,000. 2. Deferred tax asset, January 1, 2012, $0. 3. Taxable income for 2012, $115,000. 4. Pretax financial income for 2012, $200,000. 5. Cumulative temporary difference at December 31, 2012, giving rise to future taxable amounts, $220,000. 6. Cumulative temporary difference at December 31, 2012, giving rise to future deductible amounts, $35,000. 7. Tax rate for all years, 40%. 8. The company is expected to operate profitably in the future. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2012.

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