The following information is available forBuffaloCorporation for 2016 (its first year of operations).

1.Excess of tax depreciation over book depreciation, $40,400. This $40,400difference will reverse equally over the years 2017-2020.2.Deferral, for book purposes, of $19,900of rent received in advance. The rent will be recognized in 2017.3.Pretax financial income, $284,700.4.Tax rate for all years,40%.