TarHeel Corporation reported pretax book income of $1,024,000. During the current year, the net reserve for warranties increased by $101,200. In addition, tax depreciation exceeded book depreciation by $206,000. Finally, TarHeel subtracted a dividends received deduction of $54,800 in computing its current year taxable income. TarHeel's accounting effective tax rate is:

Multiple Choice

• 21%.

• 19.88%.

• 18.75%.

• 17.63%.