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$2945000 Estimated litigation expense 3945000 Extra depreciation for taxes (5946000) Taxable income $ 944000 The estimated litigation expense of $3945000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1982000 in each of the next 3 years. The income tax rate is 20% for all years. Income taxes payable is