cevable or prepaid income taxes balances Problem Solving (5 points each) Hopkins Co. at the end of 2017. Its first year of operations, prepared a reconciliation between protax financiar come and taxable income Pretax financial income Estimated litigation expense Extra depreciation for taxes Taxable income $_1.000.000 The estimated litigation expense mated litigation expense of $4,000,000 will be deductible in 2018 when it is vected to be paid. Use of the depreciable assets will result in taxable amounts of 52 000.000 in each of the next three years. The income tax rate is 30% for all years ancial income and taxable income as follows: $3,000,000 4,000,000 (6,000,000) 7. Income taxes payable is a. $0 b. $300,000 C. $600,000 d. $900.000 8. The deferred tax asset to be recognized is a. $300,000 b. $600,000 c. $900,000 d. $1,200,000 9. The amount of deferred tax liability to be recognized is a. $1,200,000 b. $900,000 c. $1,800,000 d. $1,500,000