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Problem $06-77($LO $06-5)($Algo$)$

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Hafnaoui Company reported pretax net income from continuing operations of $$1,072,000$ and taxable income of $$644,500.$ The book$$tax difference of $$427,500$ was due to a $$285,000$ favorable temporary difference relating to depreciation, an unfavorable temporary difference of $$114,000$ due to an increase in the reserve for bad debts, and a $$256,500$ favorable permanent difference from the receipt of life insurance proceeds. At the end of the year, the reserve for bad debts had a balance of $$142,500$; the beginning balance in the account was $$28,500.$ Hafnaoui's beginning book $($tax$)$ basis in its fixed assets was $$1,034,000($$$851,000)$ and its ending book $($tax$)$ basis is $$1,585,000($$$1,117,000).$

Problem $06-77$ Part a $($Algo$)$

a$.$ Compute Hafnaoui Company's current income tax expense.Compute Hafnaoui Company's deferred income tax expense or benefit