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 Estimated litigation expense 4,000,000 Extra depreciation for taxes (6,000,000) Taxable income $3,000,000 $ 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. 2. Income taxes payable is a. $0. b. $300,000. c. $600,000. d. $900,000