Required information Problem 17.77 (LO 17.5) (Algo) [The following information applies to the questions displayed below] Hafnaoui Company reported pretax net income from continuing operations of $960,000 and taxable income of $585,000 The book-tax difference of $375,000 was due to a $250,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $100,000 due to an increase in the reserve for bad debts, and a $225,000 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 $125,000; the beginning tolance in the account was $25,000. Hafnaour's beginning book (tax) basis in its fixed assets was $1,020,000($830,000 ) and its ending book (tax) basis is $1,550,000 ( $1,110,000 ). Problem 17.77 Part a (Algo) a. Compute Hafnaoul Company's current income tax expense Problem 17-77 (LO 17.5) (Algo) [The following information applies to the questions displayed below] Hafnaoui Company reported pretax net income from continuing operations of $960,000 and taxable income of $585.000. The book-tax difference of $375,000 was due to a $250,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $100,000 due to an increase in the reserve for bad debts, and a $225,000 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 $125,000, the beginning balance in the account was $25,000. Hafnaoul's beginning book (tax) basis in its fixed assets was $1,020,000 (\$830,000) and its ending book (tax) basis is $1,550,000 ( $1,110,000 ) Problem 17-77 Part b (Algo) b. Compute Hafnaoul Company's deferred income tax expense or benefit. Note: Enter all numbers as a positive number and indicate whether a deferred tax expense or a deferred tax benefit. Problem 17.77 (LO 17.5) (Algo) [The following information applies to the questions displayed below] Hafnaoui Company reported pretax net income from continuing operations of $960,000 and taxable income of $585.000. The book-tax difference of $375,000 was due to a $250,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $100,000 due to an increase in the reserve for bad debts, and a $225,000 favorable permanent difference from the receipt of life insurance proceeds. At the end of the year, the roserve for bad debts had a balance of $125,000, the beginning balance in the account was $25,000. Hafnaours beginning book (tax) basis in its fixed assets was $1,020,000 ( $830,000 ) and its ending book (tax) basis is $1,550,000($1,110,000). Problem 17.77 Part c (Algo) c. Compute Hafnaoui Company's effective tax rate Note: Round your answer to 2 decimal places. Required information Problem 17.77 (LO 17.5) (Algo) [The following information applies to the questions displayed below] Hafnaoul Company reported pretax net income from continuing operations of $960,000 and taxable income of $585,000 The book-tax difference of $375,000 was due to a $250,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $100,000 due to an increase in the reserve for bad debts, and a $225,000 fovorable permanent difference from the receipt of life insurance proceeds. At the end of the year, the reserve for bad debts had a balance of $125,000, the beginning balance in the account was $25,000. Hafraoul's beginning book (tax) basis in its fixed assets was $1,020,000 ( $830,000 ) and its ending book (tax) basis is $1,550,000 ( $1,110,000). Problem 17.77 Part d (Algo) d. Provide a reconciliation of Hafnaoui Company's effective tax rate with its hypothetical tax rate of 21 percent. Note: Amounts to be deducted should be indicated by a minus sign. Round your percentages to 2 decimal places