You have been assigned to compute the income tax provision for Tulip City Flowers Inc. (TCF) as of December 31, 2014. The companys federal income tax rate is 34 percent. The companys income statement for 2014 is provided below:(Round your percentage answers to 2 decimal places.)

Tulip City Flowers Inc. Statement of Operations at December 31, 2014
Net sales	$	20,000,000
Cost of sales		12,000,000
Gross profit	$	8,000,000
Compensation	$	500,000
Selling expenses		750,000
Depreciation and amortization		1,250,000
Other expenses		1,000,000
Total operating expenses		3,500,000
Income from operations	$	4,500,000
Interest and other income		25,000
Income before income taxes	$	4,525,000

You identified the following permanent differences:

Interest income from municipal bonds:	$	10,000
Nondeductible stock compensation:	$	5,000
Domestic production activities deduction:	$	8,000
Nondeductible fines:	$	1,000

TCF prepared the following schedule of temporary differences from the beginning of the year to the end of the year:

Tulip City Flowers 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	(5,000,000)	(1,700,000)	(500,000)	(5,500,000)	(1,870,000)

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	100,000	34,000	10,000	110,000	37,400
Prepaid income	0	0	20,000	20,000	6,800
Total current	100,000	34,000	30,000	130,000	44,200
NonCurrent
Deferred compensation	50,000	17,000	10,000	60,000	20,400
Accrued pensionliabilities	500,000	170,000	100,000	600,000	204,000
Total noncurrent	550,000	187,000	110,000	660,000	224,400
Total	650,000	221,000	140,000	790,000	268,600

Required:

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

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

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

d	Assume TCFs tax rate increased to 35 percent in 2014. Recompute TCFs deferred income tax expense or benefit for 2014.