Blossom 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	$ 3550000
Estimated litigation expense	4550000
Extra depreciation for taxes	( 6540000)
Taxable income	$ 1560000

The estimated litigation expense of $ 4550000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $ 2180000 in each of the next 3 years. The income tax rate is 20% for all years. Income taxes payable is

a. $ 398000.

b. $ 598000.

c. $ 312000.

d. $ 0.