Sandhill 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 $1080000 Estimated litigation expense 2800000 Installment sales (2240000) Taxable income $1640000 The estimated litigation expense of $2800000 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 $1120000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1120000 current and $1120000 noncurrent. The income tax rate is 20% for all years. The deferred tax liability to be recognized is O $328000. O $448000. O $112000. O $224000.