Deferred Tax Asset

Pretax financial income $480,000 Estimated litigation expense 325,000 Installment sales (220,000) Taxable income $585,000 The estimated litigation expense of $325,000 will be deductible in 2021 when it is expected to be paid. The profit from the installment sales will be realized in the amount of $110,000 in each of the next two years, estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $110,000 current and $110,000 noncurrent. The income tax rate is 30% for all years. Calculate the deferred tax asset, deferred tax liability, and income tax expense. Deferred Tax Asset