Sandhill Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: The estimated litigation expense of exist2800000 will be deductible in 2019 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of exist1420000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as exist1420000 current and exist1420000 noncurrent. The income tax rate is 40% for all years. The income tax expense is exist710000. exist560000. exist1420000. exist576000