Carla Vista Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: The estimated litigation expense of $4385000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2126000 in each of the next 3 years. The income tax rate is 20% for all years. Income taxes payable is $278400