A company 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 income tax reporting. Income under each method follows: Year Competed-Contract Year 1 $ Year 2 400 Year 3 700 Percentage-of-Completion $300 600 800 There are no other temporary differences. If the applicable tax rate is 25%, the company should report in its balance sheet at December 31, Year 3, a deferred income tax liability of O $25 O $425 O $150 O $125 For the year ended December 31, Year 1, a company reported pretax financial income of $160,000 and taxable income of $140,000. The tax rate for Year 1 is 40% and for future years is 30%. What amount should this company report as the current portion of income tax expense? O $42,000 O $64,000 O $48,000 O $56,000