Mill Company began operations on January $1,20$X$1,$ and recognized income from construction$-$type contracts under different methods

for tax purposes and financial reporting purposes. Information concerning income recognition under each method is as follows:

Required:

Assume the income tax rate is $21\%$ in all years and that Mill has no other temporary differences. In its December $31,203,$ balance

sheet, what amount of deferred income taxes should Mill report? Indicate whether the amount is an asset or a liability.

asset

on December $31,20x3$ is

$$192,500$