4. Sheridan 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	$ 990000
Estimated litigation expense	2650000
Installment sales	( 2120000)
Taxable income	$ 1520000

The estimated litigation expense of $ 2650000 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 $ 1060000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $ 1060000 current and $ 1060000 noncurrent. The income tax rate is 20% for all years. The deferred tax liability to be recognized is

A) $ 304000.

B) $ 212000.

C) $ 106000.

D) $ 424000.