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

The hypothetical tax rate is 21%

choices are

21%

19.88%

18.75%

17.63%