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Sheridan 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 Extra depreciation for taxes Taxable income 3055000 3835000 (5622000) $ 1268000 The estimated litigation expense of $3835000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1874000 in each of the next 3 years. The income tax rate is 30% for all years. Income taxes payable is $0. O $380400 $536100. $770100