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  3. 4 hopkins co. at the end of 2021, its first ye

4 Hopkins Co. at the end of 2021, its first year...

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Accounting

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Hopkins Co. at the end of 2021, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $1,500,000 Estimated litigation expense 3,000,000 Extra depreciation for taxes (2.000.000 Taxable income $2.500.000 The estimated litigation expense of $3,000,000 will be deductible in 2022 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1,000,000 in each of the next two years. The income tax rate is 30% for all years. Income Taxes Payable in 2021 is: Select one: O a $750,000 O b. $300,000 Oc$450,000 Od 50

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