Omega Corporation reports the following results for the current year:

a. Prepare a reconciliation of Omega'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.

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Net income per books (before federal income taxes) Federal income tax expense per books Net income per books (after federal income taxes) Tax-exempt interest income Interest on loan to purchase tax-exempt bonds MACRS depreciation exceeding book depreciation Net capital loss Insurance premium on life of corporate officer where Omega is the beneficiary Excess charitable contributions carried over to next year $738,000 (156,240) $581,760 10,000 7,000 40,000 8,000 9,000 4,000