Use the following to answer questions 25-27: Hopkins Co. at the end of 2017, its first year o 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 the depreciable assets will result in taxable amounts of $2,000,000 in each of the next three years. The income t rate is 30% for all years. f operations, prepared a reconciliation between pretax financial $3,000,000 4,000,000 (6.000,000) S 1000,000 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) $1,200,000. 27. The amount of deferred tax liability to be recognized is A) $1,200,000 B) $900,000 C) $1,800,000 D) $1,500,000