Comprehensive Problem 17-77 (LO 17-1, LO 17-2, LO 17-3, LO 17-4, LO 17-5) You have been assigned to compute the income tax provision for Motown Memories Inc. (MM) as of December 31, 2019. The company's income statement for 2019 is provided below: (Leave no answer blank. Enter zero if applicable.) Motown Memories Inc. Statement of Operations at December 31, 2019 $50,000,000 28,000,000 $22,000,000 $2,000,000 1,500,000 4,000,000 Net sales Cost of sales Gross profit Compensation Selling expenses Depreciation and amortization Other expenses Total operating expenses Income from operations 500,000 $ 8,000,000 $14,000,000 Interest and other income 1,000,000 $15,000,000 Income before income taxes You identified the following permanent differences: Interest income from municipal bonds Nondeductible meals $50,000 $ 20,000 $ 5,000 Nondeductible fines MM prepared the following schedule of temporary differences from the beginning of the year to the end of the year: Motown Memories Inc Temporary Difference Scheduling Template Beginning Current EOY EOY Cumulative T/D able Deferred Year Deferred Temporary Differences Taxes Change $(1,000,000) Taxes Accumulated depreciation $(1,680,000 $(9,000,000) $(1,890,000) Current EOY EOY Cumulative Deductible BOY Deferred Year Deferred T/D Temporary Differences es Change $50,000 es $250,000 120,000 300,000 60,000 $42,000 $52,500 Allowance for bad debts Reserve for warranties 21,000 50,400 10,500 630,000 20,000 60,000 25,200 63,000 12,600 682,500 Inventory S263A adjustment Deferred compensation Accrued pension liabilities 10,000 250,000 3,250,000 $3,980,000 $753,900 $390,000 $835,800 Total Required: a. Compute MM's current income tax expense or benefit for 2019. b. Compute MM's deferred income tax expense or benefit for 2019. c. Prepare a reconciliation of MM's total income tax provision with its hypothetical income tax expense of 21 % in both dollars and rates Req A and B Req C a. Compute MM's current income tax expense or benefit for 2019 b. Compute MM's deferred income tax expense or benefit for 2019. . Total income tax provision b. Req A and B Req C Prepare a reconciliation of MM's total income tax provision with its hypothetical income tax expense of 21% in both dollars and rates. (Amounts to be deducted should be indicated by a minus sign. Round your percentage answers to 2 decimal places.) Reconciliation of Effective Tax Rate Dollars Percent Tax provision before adjustments % Interest from municipal bonds Nondeductible meals Nondeductible fines % Income tax provision % Comprehensive Problem 17-77 (LO 17-1, LO 17-2, LO 17-3, LO 17-4, LO 17-5) You have been assigned to compute the income tax provision for Motown Memories Inc. (MM) as of December 31, 2019. The company's income statement for 2019 is provided below: (Leave no answer blank. Enter zero if applicable.) Motown Memories Inc. Statement of Operations at December 31, 2019 $50,000,000 28,000,000 $22,000,000 $2,000,000 1,500,000 4,000,000 Net sales Cost of sales Gross profit Compensation Selling expenses Depreciation and amortization Other expenses Total operating expenses Income from operations 500,000 $ 8,000,000 $14,000,000 Interest and other income 1,000,000 $15,000,000 Income before income taxes You identified the following permanent differences: Interest income from municipal bonds Nondeductible meals $50,000 $ 20,000 $ 5,000 Nondeductible fines MM prepared the following schedule of temporary differences from the beginning of the year to the end of the year: Motown Memories Inc Temporary Difference Scheduling Template Beginning Current EOY EOY Cumulative T/D able Deferred Year Deferred Temporary Differences Taxes Change $(1,000,000) Taxes Accumulated depreciation $(1,680,000 $(9,000,000) $(1,890,000) Current EOY EOY Cumulative Deductible BOY Deferred Year Deferred T/D Temporary Differences es Change $50,000 es $250,000 120,000 300,000 60,000 $42,000 $52,500 Allowance for bad debts Reserve for warranties 21,000 50,400 10,500 630,000 20,000 60,000 25,200 63,000 12,600 682,500 Inventory S263A adjustment Deferred compensation Accrued pension liabilities 10,000 250,000 3,250,000 $3,980,000 $753,900 $390,000 $835,800 Total Required: a. Compute MM's current income tax expense or benefit for 2019. b. Compute MM's deferred income tax expense or benefit for 2019. c. Prepare a reconciliation of MM's total income tax provision with its hypothetical income tax expense of 21 % in both dollars and rates Req A and B Req C a. Compute MM's current income tax expense or benefit for 2019 b. Compute MM's deferred income tax expense or benefit for 2019. . Total income tax provision b. Req A and B Req C Prepare a reconciliation of MM's total income tax provision with its hypothetical income tax expense of 21% in both dollars and rates. (Amounts to be deducted should be indicated by a minus sign. Round your percentage answers to 2 decimal places.) Reconciliation of Effective Tax Rate Dollars Percent Tax provision before adjustments % Interest from municipal bonds Nondeductible meals Nondeductible fines % Income tax provision %