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. Current income tax Deferred income tax N/A $ benefits 0 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 difference. c. Prepare the journal entry to record the deferred tax consequences of the valuation allowance. Answer is complete but not entirely correct. No Transaction General Journal Debit Credit 1 a Deferred tax asset 257,210 X OO Deferred tax benefit 257,210 x 2 b X x Deferred tax expense Deferred tax liability 43,860 X 3 213,350 X Deferred tax benefit Valuation allowance 213,350 X