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sparrow corporation reported pretax book income of $5,075,000. During the current year, the reserve for warranties increased by $304,500. In addition, tax depreciation exceeded book
sparrow corporation reported pretax book income of $5,075,000. During the current year, the reserve for warranties increased by $304,500. In addition, tax depreciation exceeded book depreciation by $406,000. Finally, Sparrow received $51,500 of tax-exempt interest from municipal bonds. Compute Sparrow's current income tax expense or benefit.
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