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Please show all work. The deferred tax asset to be recognized. Thank you! Problem:...

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Accounting

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Please show all work. The deferred tax asset to be recognized.

Thank you!

Problem: Mathis Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: S 1,200,000 3,000,000 (2.400,000) $ 1800,000 Pretax financial income Estimated litigation expense Installment sales Taxable income The estimated litigation expense of $3,000,000 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 $1,200,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1,200,000 current and S1,200,000 noncurrent. The income tax rate is 30% for all years. The deferred tax asset to be recognized is (show all working)

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