Mathis Co. at the end of 2024, its first year of operations, reported the following: Pretax financial income = $1,200,000. Estimated litigation expense = $3,000,000 reported in the income statement which will be deductible for tax purposes in 2026 when it is expected to be paid. Installment sales gross profit of $2,400,000 reported as income in the income statement that will be deferred and realized for tax purposes equally over the next two years. The income tax rate is 20% for all years. Based on this information, how much current income tax payable will Mathis report for 2024? Select one: A. $400,000. B. $240,000. O C. $360,000. O D. $800,000. Clear my choice

Mathis Co. at the end of 2024 , its first year of operations, reported the following: Pretax financial income =$1,200,000. Estimated litigation expense =$3,000,000 reported in the income statement which will be deductible for tax purposes in 2026 when it is expected to be paid. Installment sales gross profit of $2,400,000 reported as income in the income statement that will be deferred and realized for tax purposes equally over the next two years. The income tax rate is 20% for all years. Based on this information, how much current income tax payable will Mathis report for 2024 ? Select one: A. $400,000. B. $240,000. C. $360,000. D. $800,000. Clear my choice Mathis Co. at the end of 2024 , its first year of operations, reported the following: Pretax financial income =$1,200,000. Estimated litigation expense =$3,000,000 reported in the income statement which will be deductible for tax purposes in 2026 when it is expected to be paid. Installment sales gross profit of $2,400,000 reported as income in the income statement that will be deferred and realized for tax purposes equally over the next two years. The income tax rate is 20% for all years. Based on this information, how much current income tax payable will Mathis report for 2024 ? Select one: A. $400,000. B. $240,000. C. $360,000. D. $800,000. Clear my choice