logha 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

$ 1,200,000

Estimated litigation expense

3,000,000

Installment sales

(2,400,000)

Taxable income

$ 1,800,000

The estimated litigation expense of $3,000,000 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 $1,200,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1,200,000 current and $1,200,000 noncurrent. The income tax rate is 20% for all years. The deferred tax asset to be recognized is

	$0.
	$120,000 current.
	$600,000 noncurrent.
	$600,000 current