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	$2560000
Estimated litigation expense	3560000
Extra depreciation for taxes	(5568000)
Taxable income	$ 552000

The estimated litigation expense of $3560000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1856000 in each of the next 3 years. The income tax rate is 20% for all years. Income taxes payable is

A

$0.

B

$601600.

C

$401600.

D

$110400.