LO.4 Zhang, the CFO of TechCo, Inc., has used ASC 740-30 (APB 23) to avoid reporting any U.S. deferred tax expense on $30 million of the earnings of TechCo’s foreign subsidiaries. All of these subsidiaries operate in countries with lower tax rates than the United States. Zhang wants to bring home $20 million in profits from these foreign subsidiaries in the form of dividends. How will this profit repatriation affect TechCo’s book effective tax rate?