Sparrow Corporation reported pretax book income of $5,000,000. During the current year, the reserve for warranties increased by $300,000. In addition, tax depreciation exceeded book depreciation by $400,000. Finally, Sparrow received $50,000 of tax-exempt interest from municipal bonds. Sparrow has a beginning of the year balance of $15,750 of deferred tax liability, based on $75,000 of net temporary favorable differences. a. Compute Sparrow's current income tax expense or benefit. b. Compute Sparrow's deferred income tax expense or benefit