Melissa Corporation is domiciled in Germany and is listed on both the Frankfurt and New York Stock Exchanges. Melissa has chosen to prepare consolidated financial statements in accordance with U.S. GAAP for filing with the U.S. Securities and Exchange Commission but must also prepare consolidated financial statements in accordance with IFRS in accordance with European Union regulations.On December 31, 20X0, Melissa Corporation purchased a small office building for $1,380,000. For tax and financial reporting purposes, Melissa estimates that the building has a useful life of 40 years with an estimated residual value of $100,000. Melissa uses straight-line depreciation for financial reporting. Assume that, for tax purposes, Melissa is permitted to deduct 5% of an asset's depreciable base in 20X1. This is the only building that Melissa owns.At the end of 20X1, Melissa had the building appraised by a qualified real estate appraiser, who estimated the fair value of the building to be $1,172,500. Melissa intends to occupy the building itself, and, therefore, the building is classified as property, plant, and equipment under both U.S. GAAP and IFRS. After being revalued under IFRS, the Building account has a balance of $1,172,500 and the Accumulated depreciation account has a balance of zero. Assume Melissa will have sufficient income in the future to recover any deferred tax assets that might be recognized. U.S. GAAP IFRS Model used for subsequent measurement Cost Revalued at fair value Pre-tax income before depreciation and revaluation charge $500,000 $500,000Enacted tax rate*21%21%* We are assuming, for simplicity, that the relevant tax rate is 21% for all jurisdictions where Melissa is required to pay income tax.No new tax laws are substantively enacted at December 31, 20X0.Required: 1. Calculate Melissa's taxable income in 20X1. 2. Prepare the journal entry to record Melissa's 20X1 income tax activity under U.S. GAAP. What is Melissa's effective tax rate? 3. Prepare the journal entry to record Melissa's 20X1 income tax activity under IFRS. What is Melissa's effective tax rate?