The following facts relate to Buffalo Corporation. 1. Deferred tax liability, January 1, 2020, $46,800. 2. Deferred tax asset, January 1, 2020, $0. 3. Taxable income for 2020, $111,150. 4. Pretax financial income for 2020, $117,000. 5. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $280,800. 6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $40,950. Tax rate for all years, 20%. 7. 8. The company is expected to operate profitably in the future.