Sheridan 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	$3275000
Estimated litigation expense	4275000
Extra depreciation for taxes	(6270000)
Taxable income	$ 1280000

The estimated litigation expense of $4275000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2090000 in each of the next 3 years. The income tax rate is 20% for all years. Income taxes payable is

$399000.

$256000.

$599000.

$0.