You have been assigned to compute the income tax provision for Tulip City Flowers Inc. (TCF) as of December 31, 2016. The companys federal income tax rate is 34 percent. The companys income statement for 2016 is provided below:

Tulip City Flowers Inc.
Statement of Operations at December 31, 2016
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 pension liabilities	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 2016.

Current income tax expense $1412020

b. Compute TCFs deferred income tax expense or benefit for 2016???????

Deferred income tax expense ???? ($122,200 answer is INCORRECT)