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At the end of 2024, its first year of operations, Carls vista company prepared a reconciliation between pretax financial income and taxable income as below:
At the end of 2024, its first year of operations, Carls vista company prepared a reconciliation between pretax financial income and taxable income as below: pretax financial income: $2725000 estimated litigation expense: $3725000 Extra depreciation for taxes: (5730000) Taxable income: 720000 The estimated litigation expense of $3725000 will be deductible in 2025 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1910000 in each of the next 3 years. The income tax rate is 20% for all years. The deferred tax asset at the end of 2024 to be recognized is
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