Question 4 - / 0.8 Stromboli Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 1,200,000 Estimated litigation expense 2,500,000 Installment sales (2.800.000) Taxable income $ 900.000 The estimated litigation expense of $2,500,000 will be deductible in 2019 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1,400,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1,400,000 current and $1,400,000 noncurrent. The income tax rate is 40% for all years. The deferred tax asset to be recognized is $480,000 current. S1,120,000 noncurrent $1,000,000 noncurren . 2 of 25 completed Drafts Are Disabled Submit