Pharoah 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	$3220000
Estimated litigation expense	4220000
Extra depreciation for taxes	(6216000)
Taxable income	$ 1224000

The estimated litigation expense of $4220000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2072000 in each of the next 3 years. The income tax rate is 20% for all years. The deferred tax liability to be recognized is

$1043200.

$644000.

$1243200.

$844000.