1. Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 500,000 + Estimated litigation expense 1,250,000 - Installment sales (1,000,000) Taxable income $ 750,000 The estimated litigation expense of $1,250,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $500,000 in each of the next two years. The estimated liability for litigation is classified as non-current and the installment accounts receivable are classified as $500,000 current and $500,000 noncurrent The income tax rate is 30% for all years. 1. The income tax expense is * (2 points) Enter your answer 1. Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 500,000 + Estimated litigation expense 1,250,000 - Installment sales (1,000,000) Taxable income $ 750,000 The estimated litigation expense of $1,250,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $500,000 in each of the next two years. The estimated liability for litigation is classified as non-current and the installment accounts receivable are classified as $500,000 current and $500,000 noncurrent The income tax rate is 30% for all years. 1. The income tax expense is * (2 points) Enter your