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You have been assigned to compute the income tax provision for Tulip City Flowers Inc....

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Accounting

You have been assigned to compute the income tax provision for Tulip City Flowers Inc. (TCF)
as of December 31,2023. The companys income statement for 2023 is provided below:
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 tothe end of the year
see image for detail
Required:
A) Compute TCFs deferred income tax expense or benefit for 2023.
Prepare a reconciliation of TCFs total income tax provision with its hypothetical income tax expense of 21 percent in both dollars and rates.
image

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