Grand Corporation reported pretax book income of $609,000. Tax depreciation exceeded book depreciation by $406,000. In addition, the company received $304,500 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $50,750. Compute the company's current income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) * Answer is complete but not entirely correct. 0 urrent income tax Deferred income tax NA benefit $ $ 21,315 X Saginaw Incorporated completed its first year of operations with a pretax loss of $627.500. The tax return showed a net operating loss of $756,500, which the company will carry forward. The $129.000 book-tax difference results from excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tax asset Assuming the current tax expense is zero, prepare the journal entries to record the deferred tax provision and the valuation allowance. (if no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) Required: a. Prepare the journal entry to record the deferred tax consequences for recognition of the current year NOL before considering the valuation allowance b. Prepare the journal entry to record the deferred tax consequences of the depreciation book-tax clifference. c. Prepare the journal entry to record the deferred tax consequences of the valuation allowance Transaction Answer is complete but not entirely correct. General Journal Deferred tax asset Deferred tax benefit No 1 Credit Debit 2572103 a ols 2572103 NI 2 b 43.8603 Deferred tax expense Deferred tax liability 43 860 3 C 213 350 Deferred tax benefit Valuation allowance Oo 213 350 0 3