For studying: Taxes

Egor's Electric Bike (EEB), a publicly traded company, reported net income before tax of $2,750,000 for the year ended December 31,2021 . Operating income for year ended December 31,2021 included the following items: 1. Dividends received from taxable Canadian corporations, not taxable to EEB: $165,000 2. Business meals: $126,000, only 50% of which are deductible for tax purposes. 3. Interest and penalties of $17,000 from a tax dispute with Canada Revenue Agency, which are not deductible for tax purposes. 4. Warranty expense (estimate) $185,000 5. Rent expense: $80,000 6. Depreciation: $1,750,000 Reauired \#2: Prenare the reauired deferred tax entries for the vear ended December 31.2021 . Required #3: What is the effective tax rate % ? Effective tax rate = total tax expense / income before tax Required \#4: Present the Statement of Income for the year ended December 31, 2021, beginning with net income before tax