The following schedule shows how pretax financial income differs from taxable income for 2020 which is the company's first year of business: Pretax financial income $3,000,000 Accrued litigation liability 4,000,000 Excess depreciation reported for tax (6,000,000) Taxable income $ 1,000,000 The accrued litigation liability of $4,000,000 will be deductible in 2021 when it is expected to be paid. The depreciation of assets will result in taxable amounts of $2,000,000 in each of the next three years. The income tax rate is 21% for all years. Income taxes payable is $0. $210,000 $945,000 $630,000