TarHeel Corporation reported pretax book income of $1,034,000. During the current year, the net reserve for warranties increased by $101,700. In addition, tax depreciation exceeded book depreciation by $208,500. Finally, TarHeel subtracted a dividends received deduction of $56,800 in computing its current-year taxable income. TarHeel's

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter2: The Domestic And International Financial Marketplace
Section2.A: Taxes
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TarHeel Corporation reported pretax book income of $1,034,000. During the current year, the net reserve for warranties increased by $101,700. In addition, tax depreciation exceeded book depreciation by $208,500. Finally, TarHeel subtracted a dividends received deduction of $56,800 in computing its current-year taxable income. TarHeel's accounting effective tax rate is:

 

Multiple Choice
  •  

    21.00 percent.

  •  

    19.85 percent.

  •  

    18.69 percent.

  •  

    17.54 percent.

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