The following facts relate to Sandhill Corporation. 1. Deferred tax liability, January 1,2025,$24,000. 2. Deferred tax asset, January 1, 2025, \$0. 3. Taxable income for 2025,$104,500. 4. Pretax financial income for 2025,$210,000. 5. Cumulative temporary difference at December 31, 2025, giving rise to future taxable amounts, $264.000. 6. Cumulative temporary difference at December 31, 2025, giving rise to future deductible amounts, $38.500. 7. Tax rate for all years, 20%, 8. The company is expected to operate profitably in the future. SANDHILL CORPORATION Income Statement (Partial) For the Year Ended December 31, 2025 Income before Income Taxes Income Tax Expense Current 5 Deferred Net income / (Loss)