hi can you please help with tax dues, deferred tax liabilities and deferred tax assets, and tax expense in 2017 here?
Millie Co. completed its first year of operations on December 31, 2017, with pre-tax financial income of $400,000. Millie accrueda contingent liability of $900,000 for financial reporting purposes; however, the $900,000 will be paid and therefore isdeductible for tax purposes in 2018. Millie also has gross profit of $800,000 from certain sales recognized currently forfinancial reporting purposes but that will be taxable as installment sales in 2018 and 2019 when the cash is received ($400,000each year). Millie’s pre-tax financial income includes $38,000 interest earned on its holdings of the bonds of the State ofMontana. The tax rate is 35% for all years. Required: 1. Determine Millie’s taxable income and taxes due for 2017.2. Determine the changes in Millie’s deferred tax amounts for 2017.3. Calculate tax expense for Millie for 2017.