Question 7 no View Policies Current Attempt in Progress Crane Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expense Installment sales Taxable income $1530000 3550000 (2840000) $2240000 mes The estimated litigation expense of $3550000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1420000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1420000 current and $1420000 noncurrent. The income tax rate is 20% for all years. The deferred tax liability to be recognized is $142000. $568000. $284000. $448000