Exercise 3 Spartans Corp. is a calendar year accrual basis C Corporation. The following information has been provided: Book income for Year 2 Foreign Derived Intangible Income Deduction Accumulated book depreciation at Year 1 end Accumulated tax depreciation at Year 1 end Book depreciation expense for Year 2 Tax depreciation expense for Year 2 Accumulated book depreciation at Year 2 end Accumulated tax depreciation at Year 2 end Reserve for bad debt at Year 1 end Reserve for bad debt at Year 2 end Accrued vacation (no payment w/in 2.5 mos.) as of Year 1 end Accrued vacation (no payment w/in 2.5 mos.) as of Year 2 end Interest capitalized for books, deductible for tax, Year 1 Interest capitalized for books, deductible for tax, Year 2 Loss carryforward as of Year 1 end Loss carryforward as of Year 1 end on a more likely than not basis900,000 Assume the Company did not record any UTB as of Year 1 end as part of the year end provision analysis (i.e. gross NOL DTA was 1,300,000 as of Year 1 end) Spartans Corp. Statutory tax rate as of Year 1end 35% Spartans Corp. estimated Statutory tax rate for Year 2 21% Determine Spartans Corp. ASC 740 provision for Year 2 (current and deferred provision as well as the current tax liability and deferred tax asset/liability balance) and record the journal entry. * Consider preparing a proof of total tax provision by preparing a rate reconciliation.