Milo Manufacturing uses straight-line depreciation for financial statement reporting and is able to deduct 100% of the cost of equipment in the year the equipment is purchased for tax purposes. Four years after its purchase, one of Milo's manufacturing machines has a book value of $740,000. There were no other temporary differences and no permanent differences. Taxable income was $24 million and Milo’s 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 $245,000 the previous year, prepare the appropriate journal entry to record income taxes this year.

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