Current Attempt in Progress Sheridan 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 $1350000 Estimated litigation expense 3250000 Installment sales Taxable income (2600000) $2000000 The estimated litigation expense of $3250000 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 $1300000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1300000 current and $1300000 noncurrent. The income tax rate is 20% for all years. The deferred tax asset to be recognized is $130000 noncurrent. O $0. $130000 current. O $650000 noncurrent.