You have been assigned to compute the income tax provision for Tulip City Flowers Incorporated (TCF) as of December 31, 2021. The companys income statement for 2021 is provided below: (Leave no answer blank. Enter zero if applicable.)

Tulip City Flowers Incorporated Statement of Operations at December 31, 2021
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
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 Incorporated
Temporary Differences Scheduling Template
Taxable Temporary Differences	BOY Deferred Taxes	Current Year Change	EOY Cumulative T/D	EOY Deferred Taxes
Accumulated depreciation	$ (1,050,000)	$ (500,000)	$ (5,500,000)	$ (1,155,000)

Tulip City Flowers Incorporated
Temporary Differences Scheduling Template
Deductible Temporary Differences	BOY Deferred Taxes	Current Year Change	EOY Cumulative T/D	EOY Deferred Taxes
Allowance for bad debts	$ 21,000	$ 10,000	$ 110,000	$ 23,100
Prepaid income	0	20,000	20,000	4,200
Deferred compensation	10,500	10,000	60,000	12,600
Accrued pension liabilities	105,000	100,000	600,000	126,000
Total	$ 136,500	$ 140,000	$ 790,000	$ 165,900

Required:

1. Compute TCFs current income tax expense or benefit for 2021.
2. Compute TCFs deferred income tax expense or benefit for 2021.
3. Prepare a reconciliation of TCFs total income tax provision with its hypothetical income tax expense of 21 percent in both dollars and rates.

Reconciliation of Effective Tax Rate Dollars Percent Provision at 21% % % Income tax provision % Reconciliation of Effective Tax Rate Dollars Percent Provision at 21% % % Income tax provision %