Cullumber 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$3385000

Estimated litigation expense

3340000

Extra depreciation for taxes

(5514000)Taxable income

$1211000

The estimated litigation expense of $3340000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1838000 in each of the next 3 years. The income tax rate is 30% for all years.

Income taxes payable is

$363300.

$652200.

$638700.

$0.