You have been assigned to compute the income tax provision for Motown Memories, Inc. (MM) as of December 31, 2014. The Company’s federal income tax rate is 34%. The Company’s Income Statement for 2014 is provided below:

You have identified the following permanent differences:

Interest income from municipal bonds:  $50,000
Nondeductible meals and entertainment expenses:  $20,000
Domestic production activities deduction (DPAD):  $250,000
Nondeductible fines:  $5,000

MM prepared the following schedule of temporary differences from the beginning of the year to the end of the year:

a. Compute MM’s current income tax expense or benefit for 2014.
b. Compute MM’s deferred income tax expense or benefit for 2014.
c. Prepare a reconciliation of MM’s total income tax provision with its hypothetical income tax expense in both dollars and rates.