You have been assigned to compute the income tax provision for Motown Memories, Inc. (MM) as of December 31, 2018. The Company's Income Statement for 2018 is provided below: Motown Memories, Inc. Statement of Operations at December 31, 2018 Net sales $50,000,000 Cost of sales 28.000.000 Gross profit 22.000.000 Compensation 2,000,000 Selling expenses Depreciation and amortization 1,500,000 4,000,000 Other expenses 500,000 Total operating expenses 8.000.000 Income from operations $14,000,000 Interest and other income 1,000,000 Income before income taxes $15.000.000 You have identified the following permanent differences: 1) Interest income from municipal bonds of $50,000, 2) Nondeductible meals and entertainment expenses of $20,000, and 3) Nondeductible fines of $5,000 MM 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 Taxable BOY Cumulative T/D Deferred Taxes (@21%) Current Year Change Cumulative T/D Ending Deferred Taxes (@21%) Temporary Differences Accumulated depreciation (8,000,000) (1,680,000) (1,000,000) (9,000,000) (1,890,000) Beginning Deductible Cumulative TID Deferred Taxes (@21%) Current Year Change Cumulative T/D Ending Deferred Taxes (@21%) Temporary Differences Allow ance for bad debts 200,000 250,000 42,000 21,000 52,500 25,200 Reserve for warranties 50,000 20,000 60,000 100,000 120,000 Inventory $263A adjustment 240,000 50,400 300,000 63,000 12,600 Deferred compensation Accrued pension liabilities 50,000 3,000,000 10,500 630,000 10,000 250,000 60,000 3,250,000 682,500 Total 3,590,000 753,900 390,000 3,980,000 835,800 Compute MM's current income tax expense or benefit for 2018. Compute MM's deferred income tax expense or benefit for 2018. Prepare a reconciliation of MM's total income tax provision with its hypothetical income tax expense of 21% in both dollars and rates. d. Prepare a tax footnote for MM's 2018 financial statements. Including a narrative description of the tax position of the Company based on parts a-C. You have been assigned to compute the income tax provision for Motown Memories, Inc. (MM) as of December 31, 2018. The Company's Income Statement for 2018 is provided below: Motown Memories, Inc. Statement of Operations at December 31, 2018 Net sales $50,000,000 Cost of sales 28.000.000 Gross profit 22.000.000 Compensation 2,000,000 Selling expenses Depreciation and amortization 1,500,000 4,000,000 Other expenses 500,000 Total operating expenses 8.000.000 Income from operations $14,000,000 Interest and other income 1,000,000 Income before income taxes $15.000.000 You have identified the following permanent differences: 1) Interest income from municipal bonds of $50,000, 2) Nondeductible meals and entertainment expenses of $20,000, and 3) Nondeductible fines of $5,000 MM 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 Taxable BOY Cumulative T/D Deferred Taxes (@21%) Current Year Change Cumulative T/D Ending Deferred Taxes (@21%) Temporary Differences Accumulated depreciation (8,000,000) (1,680,000) (1,000,000) (9,000,000) (1,890,000) Beginning Deductible Cumulative TID Deferred Taxes (@21%) Current Year Change Cumulative T/D Ending Deferred Taxes (@21%) Temporary Differences Allow ance for bad debts 200,000 250,000 42,000 21,000 52,500 25,200 Reserve for warranties 50,000 20,000 60,000 100,000 120,000 Inventory $263A adjustment 240,000 50,400 300,000 63,000 12,600 Deferred compensation Accrued pension liabilities 50,000 3,000,000 10,500 630,000 10,000 250,000 60,000 3,250,000 682,500 Total 3,590,000 753,900 390,000 3,980,000 835,800 Compute MM's current income tax expense or benefit for 2018. Compute MM's deferred income tax expense or benefit for 2018. Prepare a reconciliation of MM's total income tax provision with its hypothetical income tax expense of 21% in both dollars and rates. d. Prepare a tax footnote for MM's 2018 financial statements. Including a narrative description of the tax position of the Company based on parts a-C