BE17-5. Permanent Differences, Reconciliation of Statutory Tax Rate to Effective Tax Rate. [Learning Objectives 2, 9] Simmox Companys income before taxes is $290,000, and its tax rate is 35%. Note that $40,000 is nontaxable interest income from its investment in municipal bonds and is included in the $290,000. There are no other book-tax differences. Prepare a reconciliation of Simmoxs statutory tax rate to its effective tax rate