LO.6 LawnCo and TreeCo operate in the same industry, and both report a 30% effective tax rate (Federal, state, and global). Their book income and current, deferred, and total tax expense are reported below. LawnCo TreeCo Book income before tax $500,000 $650,000 Current tax expense $200,000 $ 20,000 Deferred tax expense (benefit) (50,000) Total tax expense (Federal, state, global) $150,000 175,000 $195,000 Effective tax rate 30% 30%.

ShrubCo is a competitor of both of these companies. Prepare a letter to Laura Col- lins, VP-Taxation of ShrubCo, outlining your analysis of the other two companies effective tax rates, using only the preceding information. ShrubCo's address is 9979 West Third Street, Peru, IN 46970.