5.Mustard Company had depreciation for tax purposes in 2021 of $30,000 but for book purposes only $20,000.

Also in 2021, Mustard recognized a loss from a contingency amounting to $20,000 which the Internal Revenue

Service does not allow until it actually occurs which is likely in 2022. Mustard also recognized $14,000 of interest

income from its investments in tax exempt bonds which the Internal Reveunue Service will never regard as income.

Taxes paid in 2021 were $100,000 with a tax rate of 20%.

a.Determine the financial accounting (book) income for 2021

b.Determine the tax expense for 2021.

c.Determine Mustard's effective tax rate for 2021