KellerCo reports $5 million of U.S. taxable income, the same as its book income, as there are no temporary book-tax differences this year. KellerCo is subject to a 21% Federal income tax rate. Its book-tax differences include the following.
Nondeductible business meals ..............................................$ 400,000
Tax depreciation in excess of book depreciation.................1,500,000
Construct KellerCo's tax rate reconciliation for its GAAP tax footnote. Use either dollars or percentages in your reconciliation.