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Hafnaoui Company reported pretax net income from continuing operations of $ 1 , 1 6 8 , 0 0 0 and taxable income of $
Hafnaoui Company reported pretax net income from continuing operations of $ and taxable income of $ The booktax difference of $ was due to a $ favorable temporary difference relating to depreciation, an unfavorable temporary difference of $ due to an increase in the reserve for bad debts, and a $ favorable permanent difference from the receipt of life insurance proceeds. At the end of the year, the reserve for bad debts had a balance of $; the beginning balance in the account was $ Hafnaoui's beginning book tax basis in its fixed assets was $$ and its ending book tax basis is $$ d Provide a reconciliation of Hafnaoui Company's effective tax rate with its hypothetical tax rate of percent.
Hafnaoui Company reported pretax net income from continuing operations of $ and taxable income of $ The booktax difference of $ was due to a $ favorable temporary difference relating to depreciation, an unfavorable temporary difference of $ due to an increase in the reserve for bad debts, and a $ favorable permanent difference from the receipt of life insurance proceeds. At the end of the year, the reserve for bad debts had a balance of $; the beginning balance in the account was $ Hafnaoui's beginning book tax basis in its fixed assets was $$ and its ending book tax basis is $$ d Provide a reconciliation of Hafnaoui Company's effective tax rate with its hypothetical tax rate of percent.
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