TarHeel Corporation reported pretax book income of $1,034,000. During the current year, the net reserve for warranties increased by $101,700. In addition, tax depreciation exceeded book depreciation by $208,500. Finally, TarHeel subtracted a dividends received deduction of $56,800 in computing its current-year taxable income. TarHeel's
TarHeel Corporation reported pretax book income of $1,034,000. During the current year, the net reserve for warranties increased by $101,700. In addition, tax depreciation exceeded book depreciation by $208,500. Finally, TarHeel subtracted a dividends received deduction of $56,800 in computing its current-year taxable income. TarHeel's
Chapter2: The Domestic And International Financial Marketplace
Section2.A: Taxes
Problem 3P
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TarHeel Corporation reported pretax book income of $1,034,000. During the current year, the net reserve for warranties increased by $101,700. In addition, tax depreciation exceeded book depreciation by $208,500. Finally, TarHeel subtracted a dividends received deduction of $56,800 in computing its current-year taxable income. TarHeel's accounting effective tax rate is:
Multiple Choice
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21.00 percent.
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19.85 percent.
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18.69 percent.
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17.54 percent.
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