Crane 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	$840000
Estimated litigation expense	2400000
Installment sales	(1920000)
Taxable income	$1320000

The estimated litigation expense of $2400000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $960000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $960000 current and $960000 noncurrent. The income tax rate is 20% for all years. The deferred tax liability to be recognized is

$264000.

$384000.

$192000.

$96000.