Mathis Co. at the end of 2007, its first year Of operations, prepared a reconciliation between pretax financial income and taxable income as follows.

Pretax financial income $ 750,000

Estimated litigation expense $ 1,000,000

Installment sales (1,500,000)

Taxable income $ 250,000

The estimated litigation expense of $1,000,000 will be deductible in 2008 when it is expected to be paid. Use of the depreciable assets will result in taxable amount of $500,00 in each of the next three years. The income tax rate is 30% for all years Question:

1.the income tax payable for 2007 is?

2.The deferred tax asset to be recognized for 2007 is?