Green Corporation reported pretax book income of $1,008,000. During the current year, the net reserve for warranties increased by $50,400. In addition, tax depreciation exceeded book depreciation by $102,000. Finally, Green subtracted a dividends received deduction of $25,200 in computing its current year taxable income. Green's cash tax rate is:

1. 21%.
2. 20.48%.
3. 19.95%.
4. 19.40%.