Hopkins 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 $3,000,000estimated litigation ,000,000extra depreciation for ,000,000)taxable $100,000the estimated litigation expense of $4,000,000 will be deductible in 2018 when it is expected to be paid. use of the depreciable assets will result in taxable amounts of $2,000,000 in each of the next three years. the income tax rate is 30% for all years. the deferred tax liability to be recognized is1. $900,000.2. $1,200,000.3. $1,800,000.4. $1,500,000.

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be: