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 202 and 203 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 201 2. Determine the changes in Millie's deferred tax amounts for 20X1. 3. Calculate tax expense for Millie for 201