Millie Co. completed its first year of operations on December 31, 20X1, with pre-tax financial income of $400,000. Millie accrued a contingent liability of $900,000 for financial reporting purposes; however, no tax deduction is permitted until a payment is made. Millie also has gross profit of $800,000 from certain sales recognized currently for financial reporting purposes but that will be taxable as installment sales in 20X2 and 20X3 when the cash is received ($400,000 each year). Millie's pre-tax financial income includes $38,000 interest earned on its holdings of the bonds of the State of Montana. The tax rate is 21% for all years. Required: 1. Determine Millie's taxable income and taxes due for 20X1. 2. Determine the changes in Millie's deferred tax amounts for 201. 3. Calculate tax expense for Millie for 201. 1. Taxable income Current tax due for 20X1 2. Increase/(Decrease) in deferred tax liability Increase/(Decrease) in deferred tax asset 3. Income tax expense for 20X1 Amount $ 462,000