Jackson Company at the end of its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expense Installment sales Taxable income $ 300,000 750,000 600,000 $ 450.000 The estimated litigation expense of $750,000 will be deductible in two years when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $300,000 in each of the next two years. The income tax rate is 20% for all years. Income tax payable at the end of Year 1 is a $60,000. b. $90,000 C. $30,000 d. $450,000