Use the Following Information for Questions 58 Through 60

question 65

Multiple Choice

Use the following information for questions 58 through 60.
Hopkins Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: The estimated litigation expense of $2,000,000 will be deductible in 2015 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 three years. The income tax rate is 30% for all years.
-The deferred tax asset to be recognized is

• A) $150,000 current.
• B) $300,000 current.
• C) $450,000 current.
• D) $600,000 current.

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Definitions:

Date of Payment

The specific day on which a financial obligation must be paid, such as the date dividends are distributed to shareholders.

Dividend Payment

A financial distribution by a corporation to its shareholders, typically from the company's earnings.

Personal Taxes

Taxes levied on individuals or households by the government based on income, wealth, or consumption.