Problem - Pharoah Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:

Pretax financial income $3550000

Estimated litigation expense 4055000

Extra depreciation for taxes (6000000)

Taxable income $  1605000

The estimated litigation expense of $4055000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2000000 in each of the next 3 years. The income tax rate is 40% for all years.

Calculate the Income taxes payable.