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7 Required information [The following information applies to the questions displayed below.] Hafnaoui Company reported pretax net income from continuing operations of $863,500 and taxable
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Required information [The following information applies to the questions displayed below.] Hafnaoui Company reported pretax net income from continuing operations of $863,500 and taxable income of $612,500. The book-tax difference of $251,000 was due to a $286,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $124,000 due to an increase in the reserve for bad debts, and a $89,000 favorable permanent difference from the receipt of life insurance proceeds. d. Provide a reconciliation of Hafnaoui Company's effective tax rate with its hypothetical tax rate of 21 percent. Note: Amounts to be deducted should be indicated by a minus sign. Round your percentages to 2 decimal placesStep by Step Solution
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