Randolph Company reported pretax net income from continuing operations of $800,000 and taxable income of $500,000. The book-tax difference of $300,000 was due to a $200,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $80,000 due to an increase in the reserve for bad debts, and a $180,000 favorable permanent difference from the receipt of life insurance proceeds. Randolph Companys applicable tax rate is 34 percent.

c.Compute Randolph Companys effective tax rate.(Round

your answer to 2 decimal places.)

and

d.Complete

the reconciliation of Randolph Companys effective tax rate with its

hypothetical tax rate of 34 percent.(Amounts to be deducted should be indicated by

a minus sign. Round your percentages to 2 decimal places.)