Reconciling Effective and Statutory Tax Rate In 2020, Rafting Inc. had pretax GAAP income of $80,000 and the federal statutory tax rate is 25%. Rafting Inc. has no temporary differences, and so there is no deferred tax component to income tax expense. However, Rafting Inc. has the following permanent difference items. Interest revenue of $16,000 resulting from an investment in tax-exempt municipal bonds. Fines paid of $24,000 relating to several environmental laws that were violated. The fines are not tax- deductible. Required a. Record the income tax expense journal entry. Date Dec. 31, 2020 Income Tax Expense Account Name Income Tax Payable Dr. Cr. 0 x 0 00 > x 0 x b. Prepare a reconciliation of the statutory tax rate to the effective tax rate. Note: Use a negative sign to indicate a decrease. Note: Enter the percent rounded to one digit after the decimal; for example, enter 8.4 for 8.44%, or 8.5 for 8.45%. Percentage Statutory tax rate 0% * Tax-exempt income 0% * Non-deductible expense 0% * Effective tax rate 0% *