Question 28 1 pts Cai 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 Estimated litigation expense $600,000 1,500,000 (1,200,000). $900,000 Installment sales Taxable income The estimated litigation expense of $1,500,000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $600,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $600,000 current and $600,000 noncurrent. The income tax rate is 20% for all years. The deferred tax liability to be recognized is O $60,000. $180,000. $240,000. $120,000