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.