Athis Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:Pretax financial income $ 1,200,000Estimated litigation expense 3,000,000Installment sales (2,400,000)Taxable income $ 1,800,000The estimated litigation expense of $3,000,000 will be deductible in 2019 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1,200,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1,200,000 current and $1, 200,000 noncurrent, The income tax rate is 30% for years.
Find the income tax expense, the deffered tax asset to be recognized, and the defferred tax liablitiy to be recognized.