You have been assigned to compute the income tax provision for Motown Memories Inc. (MM) as of December 31, 2018. The companys 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		1,500,000
Depreciation and amortization		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 identified the following permanent differences:

Interest income from municipal bonds	$	50,000
Nondeductible meals	$	20,000
Nondeductible fines	$	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
Taxable Temporary Differences	BOY Cumulative T/D		Beginning Deferred Taxes (@ 21%)		Current Year Change		EOY Cumulative T/D		Ending Deferred Taxes (@ 21%)
Accumulated depreciation	$(8,000,000)		$(1,680,000)		$(1,000,000)		$(9,000,000)		$(1,890,000)
Deductible Temporary Differences	BOY Cumulative T/D		Beginning Deferred Taxes (@ 21%)		Current Year Change		EOY Cumulative T/D		Ending Deferred Taxes (@ 21%)
Allowance for bad debts	$200,000		$42,000		$50,000		$250,000		$52,500
Reserve for warranties	100,000		21,000		20,000		120,000		25,200
Inventory 263A adjustment	240,000		50,400		60,000		300,000		63,000
Deferred compensation	50,000		10,500		10,000		60,000		12,600
Accrued pension liabilities	3,000,000		630,000		250,000		3,250,000		682,500
Total	$3,590,000		$753,900		$390,000		$3,980,000		$835,800

Required:

Compute MMs current income tax expense or benefit for 2018.

Compute MMs total income tax provision for 2018.

Prepare a reconciliation of MMs total income tax provision with its hypothetical income tax expense of 21% in both dollars and rates.

a. Compute MMs current income tax expense or benefit for 2018. b. Compute MMs total income tax provision for 2018.

a.
b.	Total income tax provision