Using the information from BE18.3, calculate the effective rate of income tax for Nilson Inc. for 2020. Also make a reconciliation from the statutory rate to the effective rate, using percentages. Round to one decimal place. 

Data From BE18.3.

Nilson Inc. had accounting income of $156,000 in 2020. Included in the calculation of that amount is the CEO's life insurance expense of $5,000, which is not deductible for tax purposes. In addition, the undepreciated capital cost (UCC) for tax purposes is $14,000 lower than the net carrying amount of the property, plant, and equipment, although the amounts were equal at the beginning of the year. Prepare Nilson's journal entry to record 2020 taxes, assuming IFRS and a tax rate of 25%.