LO.2 Willingham, Inc., an accrual basis C corporation, reports pretax book income of $1.6 million. At the beginning of the tax year, Willingham reported no deferred tax accounts on its balance sheet. It is subject to a 21% U.S. income tax rate in the current year and for the foreseeable future. Willingham's book-tax differences include the following. Compute the entity's current and deferred income tax expense for the year. Addition to the book reserve for uncollectible receivables (no specific write-offs occurred; therefore, a zero income tax deduction) Tax depreciation in excess of book Book gain from installment sale of nonbusiness asset, deferred for tax Interest income from school district bonds $4,000,000 3,000,000 2,000,000 200,000