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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

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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

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