Hopkins 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....................................... $3,000,000

Estimated Litigation Expense............................... $4,000,000

Extra depreciation for taxes............................... ($6,000,000)

Taxable Income...................................................... $1,000,000

The estimated litigation expense of $4,000,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2,000,000 in each of the next three years. The income tax rate is 30% for all years. The deferred tax asset to be recognized is

a. 300,000

b. 1,200,000

c. 900,000

d. 1,500,000