4. Menlo, which began operations on January 1, year 1, recognizes income from long-term construction contracts under the percentage of completion method in its financial statements and under the completed contract method for tax reporting. Income under each method is a s follows: Completed Contract Percentage of completion Year Year 1 Year 2 Year 3 500,000 700.000 400,000 600,000 450,000 The income tax rate was 30% for year 1 through year 3. There are no other temporary differences. Menlo should report in its December 31, year 3 balance sheet a deferred income tax liability of