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.