You have been assigned to compute the income tax provision for Motown Memories Inc. (MM) as of December 31, 2019. The companys income statement for 2019 is provided below: Motown Memories Inc. Statement of Operations at December 31, 2019

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

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 Beginning Deferred Taxes Current Year Change EOY Cumulative T/D EOY

Deferred Taxes Accumulated depreciation $(1,680,000) $(1,000,000) $(9,000,000) $(1,890,000)

Deductible Temporary Differences BOY Deferred Taxes Current Year Change EOY Cumulative T/D EOY Deferred Taxes Allowance for bad debts $42,000 $50,000 $250,000 $52,500

Reserve for warranties 21,000 20,000 120,000 25,200

Inventory 263A adjustment 50,400 60,000 300,000 63,000

Deferred compensation 10,500 10,000 60,000 12,600

Accrued pension liabilities 630,000 250,000 3,250,000 682,500

Total $753,900 $390,000 $3,980,000 $835,800

Required:

A. Compute MMs current income tax expense or benefit for 2019.

B. Compute MM's deferred income tax expense or benefit for 2019.

C. Prepare a reconciliation of MMs total income tax provision with its hypothetical income tax expense of 21% in both dollars and rates.

HELLO, I NEED HELP FIGURING OUT THE PERCENTAGE FOR THE INCOME TAX PROVISION. I HAVE TRIED DIVIDING THE 3,144,750/.21 AND AM NOT ABLE TO FIND ANSWER.

a. Compute MM's current income tax expense or benefit for 2019. b. Compute MM's deferred income tax expense or benefit for 2019. Current income tax expense Total income tax provision $ 3,016,650 $ 3,144,750 Prepare a reconciliation of MM's total income tax provision with its hypothetical income tax and rates. (Amounts to be deducted should be indicated by a minus sign. Round your perce places.) Reconciliation of Effective Tax Rate Dollars Percent Tax provision before adjustments % Interest from municipal bonds Nondeductible meals $ 3,150,000 $ (10,500) $ 4,200 $ 1,050 $ 3,144,750 21.00 (0.07) 0.03 0.00 (20.97) % Nondeductible fines Income tax provision