Blossom 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 $1140000 Estimated litigation expense 2900000 Installment sales (2320000) Taxable income $1720000 The estimated litigation expense of $2900000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1160000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1160000 current and $1160000 noncurrent. The income tax rate is 20% for all years.

Find the income tax expense, the deffered tax asset to be recognized, and the defferred tax liablitiy to be recognized.