Exercise 16-1 (Algo) Temporary difference; taxable income given; financial statement effects [LO16-1, 16-2, 16-8] Alvis Corporation reports pretax accounting income of $580,000, but due to a single temporary difference, taxable income is only $385,000. At the beginning of the year, no temporary differences existed. Required: 1. Assuming a tax rate of 25%, what will be Alvis's net income? 2. What will Alvis report in the balance sheet pertaining to income taxes