Question
TarHeel Corporation reported pretax book income of $1,032,000. During the current year, the net reserve for warranties increased by $101,600. In addition, tax depreciation exceeded
TarHeel Corporation reported pretax book income of $1,032,000. During the current year, the net reserve for warranties increased by $101,600. In addition, tax depreciation exceeded book depreciation by $208,000. Finally, TarHeel subtracted a dividends received deduction of $56,400 in computing its current year taxable income. TarHeel's accounting effective tax rate is?
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Cornerstones of Managerial Accounting
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
2nd Canadian edition
978-0176721237, 978-0176530884
