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Ivanhoe Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax
Ivanhoe 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 Estimated litigation expense Extra depreciation for taxes Taxable income $2450000 3450000 (5460000) $ 440000 The estimated litigation expense of $3450000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1820000 in each of the next 3 years. The income tax rate is 20% for all years. Income taxes payable is O $402000. O so. O $602000. O $88000
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