Alpha Corporation reports the following results for the current year:

Net income per books (before federal income taxes) . . . . . . . . . . . . . . . . . . . . . . . . . $738,000

Federal income tax expense per books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (156,240)

Net income per books (after federal income taxes) . . . . . . . . . . . . . . . . . . . . . . . . . . . $581,760

Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

Interest on loan to purchase tax-exempt bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000

MACRS depreciation exceeding book depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

Net capital loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000

Insurance premium on life of corporate officer where Alpha is the beneficiary . . . . . . 9,000

Excess charitable contributions carried over to next year . . . . . . . . . . . . . . . . . . . . . . . . 4,000

a. Prepare a reconciliation of Alpha’s taxable income before special deductions with its book income. 

b. Prepare a tax provision reconciliation as in Step 9 of the Tax Provision Process. Assume a 21% tax rate.