Current Attempt in Progress

Sheridan Inc. had accounting income of $$154,000$ in $2023.$ Included in the calculation of that amount is the CEO's life insurance

expense of $$6,160,$ which is not deductible for tax purposes. In addition, the UCC for tax purposes is $$12,800$ lower than the net

carrying amount of the property, plant, and equipment, although the amounts were equal at the beginning of the year. Assume the tax

rate is $25\%.$

Calculate the effective rate of income tax for Sheridan Inc. for $2023.$ Also make a reconciliation from the statutory rate to the effective

rate, using percentages. $($Round percentages to $1$ decimal place, e$.$g$.15\mathrm{.}2\%.)$

Effective tax rate SHERIDAN INC.

Reconciliation Statement

For the Year $2023$

@ $25\%$

Divided by

Accounting Income

$$154,000$

$6,160$ Accounting Income

Non$-$Deductible Insurance Expense

Non$-$Deductible Fines

Non$-$Taxable Dividends

Taxable Dividends