Company ABC reports $$2,000,000$ of GAAP financial reporting income in $2001.$ Included in their $2001$ financial reporting income is revenue on installment sales of $$500,000,$ warranty expense of $$100,000$ and municipal bond interest income of $$200,000($you can assume they continue to receive the municipal bond interest every year$).$For tax purposes: Installment sales are taxed when collected. $$300,000$ was collected in $2001,$ and they expect to collect $$100,000$ in $2002,$ $$50,000$ in $2003,$ and $$50,000$ in $2004.$ Warranty costs are deductible for tax purposes when repairs are made. In $2001,$ABC spends $$50,000$ on repair costs and expects to incur $$30,000$ in $2002$ and$$20,000$ in $2003.$ Municipal bond interest is never taxed, and you can assume that they continue tocollect the same municipal bond interest for $2002,2003,$ and $2004.$The current tax rate is $30\%$ and it is expected to increase to $35\%$ for $2002$ and to $40\%$ for $2003$ and beyond.What is the tax payable for $2001?$What is the journal entry that ABC will record at the end of $2001$ to set up the deferred tax asset $($or liability$),$ and record tax expense and tax payable based on the above set of facts?How will ABC report the deferred tax asset$/$liability on the $2001$ balance sheet $[$please include $(1)$ the amount and $(2)$ the proper classification $($current$/$non$-$ current and asset$/$liability$)$ in your answer$]?$