Crane Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expense Extra depreciation for taxes Taxable income The estimated litigation expense of $4440000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1820000 in each of the next 3 years. The Income tax rate is 30% for all years. Income taxes payable is O $771000. 50. $2890000 4440000 (5460000) $ 1870000 $306000. $561000.