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) ......................... $4,000,000
Tax depreciation in excess of book .....................................................................     3,000,000
Book gain from installment sale of nonbusiness asset, deferred for tax .......     2,000,000
Interest income from school district bonds .......................................................        200,000