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The Company at the end of 2020. Ist year of operations, prepared a reconciliation between pre financial income and Pretax financial income $3,000,000 Estimated stigation

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The Company at the end of 2020. Ist year of operations, prepared a reconciliation between pre financial income and Pretax financial income $3,000,000 Estimated stigation expense 4,000,000 Extra depreciation for taves (6.000.000) Taxable income $ 1.000.000 The estimated litigation expense of $4,000,000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2,000,000 in each of the next three years. The income tax rate is 30% for all years The amount of deferred tax liability to be recognized is $1,200,000 $900,000 $1,800,000 $1,500,000

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