Mathhias Co. at the end of 2018, its first year of operations, prepared a reconciliation betwen pretax financial income and taxable income as follows... The deferred tax asset to be recognized is:

Mathhias Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expense Taxable income $600,000 1,500,000 2,100,000 The estimated litigation expense of $1,500,000 will be deductible in 2020 when it is expected to be paid. The estimated liability for litigation is classified as noncurrent. The income tax rate is 30% for all years. 7. The deferred tax asset to be recognized is a. $0 b. $90,000 current. c. $450,000 current. d. $450,000 noncurrent