You have been assigned to compute the income tax provision for Cool Corporation. The companys income statement for 2017 is as follows:

Cool Corporation

Income Statement

Year ended 12/31/2017

Net Sales	151,730,000
Cost of Sales	103,410,000
Gross Profit	48,320,000
Other Income:
Dividends	2,300,000
Interest	1,113,000
Total Other Income	3,413,000
Gross Income	51,733,000
Expenses:
Compensation	14,100,000
Depreciation	2,913,000
Charitable Donations	63,000
Meals and Entertainment	164,800
Other Expenses	2,200,000
Total Expenses	19,440,800
Pre-tax Income	32,292,200

You have identified the following:

Interest from municipal bonds $63,000

Dividend Received Deduction $1,610,000

DPAD $230,000

Cool Co. prepared the following schedule of temporary differences from the beginning of the year to the end of the year.

Taxable Temp Differences	BOY Cumulative T/D	Beginning Deferred Taxes @34%	Current Year Change	EOY Cumulative T.D.	Ending Deferred Taxes @34%
Accumulated Depreciation	(5,175,000)	(1,759,500)	(845,000)	(6,020,000)	(2,046,800)
Total	(5,175,000)	(1,759,500)	(845,000)	(6,020,000)	(2,046,800)
Deductible Temporary Differences	BOY Cumulative T/D	Beginning Deferred Taxes @34%	Current Year Change	EOY Cumulative T.D.	Ending Deferred Taxes @34%
Allowance for Bad Debts	115,000	39,100	17,500	132,500	45,050
Accrued Warranties	157,500	53,550	63,000	220,500	74,970
Charitable Contributions	111,000	37,740	34,500	145,500	49,470
Deferred Compensation	425,000	144,500	(212,000)	213,000	72,420
Total	808,500	274,890	(97,000)	711,500	241,910

Required:

a) Compute the current income tax expense or benefit for Cool Co. assuming a 34% tax rate.

b) Compute the deferred income tax expense or benefit for Cool Co.

c) Prepare a reconciliation of Cool's total income tax provision with its hypothetical income tax expense in both dollars and rates.