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	$900000
Estimated litigation expense	2500000
Installment sales	(2000000)
Taxable income	$1400000

The estimated litigation expense of $2500000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1000000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1000000 current and $1000000 noncurrent. The income tax rate is 20% for all years. The deferred tax liability to be recognized is

$100000.

$280000.

$400000.

$200000.