78. You have been assigned to compute the income tax provision for Tulip City Flowers Inc. (TCF) as of December 31, 2022. The company's income statement for 2022 is provided below: Tulip City Flowers Inc. Statement of Operations at December 31, 2022 Net sales Cost of sales Gross profit Compensation Selling expenses Depreciation and amortization Other expenses Total operating expenses Income from operations $20,000,000 12,000,000 $ 8,000,000 $ 500,000 750,000 1,250,000 1,000,000 $ 3,500,000 $ 4,500,000 Interest and other income Income before income taxes 25,000 $ 4,525,000 You identified the following permanent differences: Interest income from municipal bonds $10,000 Nondeductible stock compensation Nondeductible fines 5,000 1,000 TCF prepared the following schedule of temporary differences from the beginning of the year to the end of the year: Tulip City Flowers Inc. Temporary Differences Scheduling Template Page 17-45 3 Taxable Temporary Differences Accumulated depreciation Deductible Temporary Differences Allowance for bad debts Prepaid income Deferred compensation BOY Deferred Taxes $ 21,000 BOY Deferred Taxes $(1,050,000) Current-Year Change $(500,000) EOY Cumulative T/D EOY Deferred Taxes $(5,500,000) $(1,155,000) Current-Year Change $ 10,000 EOY Cumulative T/D $110,000 EOY Deferred Taxes $ 23,100 0 10,500 20,000 10,000 20,000 Accrued pension liabilities Total 105,000 100,000 60,000 600,000 4,200 12,600 126,000 $136,500 $140,000 $790,000 $165,900 Required: a) Compute TCF's current income tax expense or benefit for 2022. b) Compute TCF's deferred income tax expense or benefit for 2022. c) Prepare a reconciliation of TCF's total income tax provision with its hypothetical income tax expense of 21 percent in both dollars