You have been assigned to compute the income tax provision for Motown Memories Inc. (MM) as of December 31, 2014. The companys federal income tax rate is 34 percent. The companys income statement for 2014 is provided below:

Motown Memories Inc.
Statement of Operations at December 31, 2014
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 and entertainment expenses:	$	20,000
Domestic production activities deduction:	$	250,000
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 (@ 34%)	Current Year Change	EOY Cumulative T/D	Ending Deferred Taxes (@ 34%)
Noncurrent
Accumulated depreciation	(8,000,000)	(2,720,000)	(1,000,000)	(9,000,000)	(3,060,000)

Deductible Temporary Differences	BOY Cumulative T/D	Beginning Deferred Taxes (@ 34%)	Current Year Change	EOY Cumulative T/D	Ending Deferred Taxes (@ 34%)
Current
Allowance for bad debts	200,000	68,000	50,000	250,000	85,000
Reserve forwarranties	100,000	34,000	20,000	120,000	40,800
Inventory 263A adjustment	240,000	81,600	60,000	300,000	102,000
Total current	540,000	183,600	130,000	670,000	227,800
Noncurrent
Deferred compensation	50,000	17,000	10,000	60,000	20,400
Accrued pensionliabilities	3,000,000	1,020,000	250,000	3,250,000	1,105,000
Total noncurrent	3,050,000	1,037,000	260,000	3,310,000	1,125,400
Total	3,590,000	1,220,600	390,000	3,980,000	1,353,200

Required:

a.	Compute MMs current income tax expense or benefit for 2014.

b.	Compute MMs deferred income tax expense or benefit for 2014.

c.	Prepare a reconciliation of MMs total income tax provision with its hypothetical income tax expense in both dollars and rates.(Amounts to be deducted should be indicated by a minus sign. Round your percentage answers to 2 decimal places.)