Only A&B
Only 
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 Net sales $50,000,000 28,000,000 $22,000,000 $2,000,000 1,500,000 4,000,000 500,000 $ 8,000,000 Cost of sales Gross profit Compensation Selling expenses Depreciation and amortization Other expenses Total operating expenses Income from operations $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 50,000 $ 20,000 $ 5,000 Nondeductible meals Nondeductible fines IM 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 Taxable Deferred Year Deferred Change $(1,000,000) Temporary Differences es es Accumulated depreciation (1,680,000) $(9,000,000) $(1,890,000) EOY Current EOY Deductible Cumulative BOY Deferred Year Deferred Temporary Differences T/D es Change $50,000 Taxes $42,000 $250,000 $52,500 Allowance for bad debts Reserve for warranties 21,000 50,400 10,500 20,000 60,000 10,000 250,000 120,000 300,000 60,000 25,200 63,000 12,600 682,500 Inventory S263A adjustment Deferred compensation 630,000 3,250,000 Accrued pension liabilities $753,900 $390,000 $835,800 $3,980,000 Total equired: Compute MM's current income tax expense or benefit for 2019. Compute MM's deferred income tax expense or benefit for 2019. . Prepare a reconciliation of MM's total income tax provision with its hypothetical income tax expense of 21% in both dollars and rates. Req C Req A and B a. Compute MM's current income tax expense or benefit for 2019. b. Compute MM's deferred income tax expense or benefit for 2019 a. Total income tax provision b. 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 Net sales $50,000,000 28,000,000 $22,000,000 $2,000,000 1,500,000 4,000,000 500,000 $ 8,000,000 Cost of sales Gross profit Compensation Selling expenses Depreciation and amortization Other expenses Total operating expenses Income from operations $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 50,000 $ 20,000 $ 5,000 Nondeductible meals Nondeductible fines IM 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 Taxable Deferred Year Deferred Change $(1,000,000) Temporary Differences es es Accumulated depreciation (1,680,000) $(9,000,000) $(1,890,000) EOY Current EOY Deductible Cumulative BOY Deferred Year Deferred Temporary Differences T/D es Change $50,000 Taxes $42,000 $250,000 $52,500 Allowance for bad debts Reserve for warranties 21,000 50,400 10,500 20,000 60,000 10,000 250,000 120,000 300,000 60,000 25,200 63,000 12,600 682,500 Inventory S263A adjustment Deferred compensation 630,000 3,250,000 Accrued pension liabilities $753,900 $390,000 $835,800 $3,980,000 Total equired: Compute MM's current income tax expense or benefit for 2019. Compute MM's deferred income tax expense or benefit for 2019. . Prepare a reconciliation of MM's total income tax provision with its hypothetical income tax expense of 21% in both dollars and rates. Req C Req A and B a. Compute MM's current income tax expense or benefit for 2019. b. Compute MM's deferred income tax expense or benefit for 2019 a. Total income tax provision b
