Why D$?$In fiscal year $2021,$ Curie Inc reported income before taxes of $$1,600$ and an effective tax rate of $30\%.$ The

statutory tax rate was $20\%.$ Which of the following could explain the difference between the effective tax rate

and the statutory tax rate?

$($i$)$ Curie Inc increased the valuation allowance for its deferred tax assets by $$160$

$($ii$)$ Curie Inc increased the valuation allowance for its deferred tax assets by $$800$

$($iii$)$ Curie Inc paid a fine in the amount of $$800$

a$.($i$)$ only

b$.($ii$)$ only

c$.($iii$)$ only

d$.($i$)$ or $($iii$)$ only

e$.($ii$)$ or $($iii$)$ only

ANSWER:D