1. At the end of 2016, its first year of operations, Dawson Corp. Prepared the following reconciliation between the pre-tax accounting income and taxable income:

Pre-tax accounting income $300,000

Estimated lawsuit expense 750,000

Instalment sales (600,000)

Taxable Income $450,000

The estimated law suit expense of $750,000 will be deductible in 2018 when it is expected to be paid. The instalment sales will be realized at $300,000 in each of the next two years. The income tax rate is 30% for all years. The net deferred tax to be recorded is