to answer uestions 25-27:. Hopkins Co. at the en of 201 i first year of operations,prepared a reconcilation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expense Extra depreciation for taxes Taxable income The estimated litigation expense of $4,000,000 will be deductible in 2018 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. S3,000,000 4,000,000 (6.000,000) 000,000 25. Income taxes payable is A) $0. B) $300,000. C) $600,000. D) $900,000. 26. The deferred tax asset to be recognized is A) $300,000. B) $600,000. C) $900,000. D) S1,200,000. 27. The amount of deferred tax liability to be recognized is A) S1,200,000 B) $900,000 C) $1,800,000 D) S1,500,000 28. Munoz Corp.'s books showed pretax financial income of $3,600,000 for the year ended December 31, 2018. In the computation of federal income taxes, the following data were considered: Gain on an involuntary conversion (Munoz has elected to replace the property within the statutory statutory 560,000 period using total proceeds.) Depreciation deducted for tax purposes in excess of depreciation 240,000 300,000 30% deducted for book purposes Federal estimated tax payments, 2018 Enacted federal tax rate, 2018 What amount should Munoz report as its current federal income tax liability on its December 31, 2018 balance sheet? A) $240,000 B) $312,000 C) $540,000 D) $612,000