Randolph Company reported pretax net income from continuing operations of $982,500 and taxable income of $612,500. The book-tax difference of $370,000 was due to a $246,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $150,000 due to an increase in the reserve for bad debts, and a $274,000 favorable permanent difference from the receipt of life insurance proceeds.

a. Compute Randolph Companys current income tax expense.

Current Income Tax expense ------------------------------?

b.

Compute Randolph Companys deferred income tax expense or benefit.

Deffered Income Tax expense -------------------------------?

c. Compute Randolph Companys effective tax rate. (Round your answer to 2 decimal places.)

Effective tax rate ---------------------%?

d. Complete the reconciliation of Randolph Companys effective tax rate with its hypothetical tax rate of 21 percent. (Amounts to be deducted should be indicated by a minus sign. Round your percentages to 2 decimal places.)

ETR reconciliation (in $)
Income tax expense at 21%
Tax benefit from permanent difference
Income tax provision
ETR reconciliation (in %)
Hypothetical income tax rate	21.00	%
Tax benefit from permanent difference		%
Effective tax rate		%