d. Provide a reconciliation of Hafnaoui Company's effective tax rate with its hypothetical tax rate of 21 percent. Note: Amounts to be deducted should be indicated by a minus sign. Round your percentages to 2 decimal places. ETR reconciliation (in S) Income tax expense at 21% Tax benefit from permanent difference Income tax provision ETR reconciliation (in %) Hypothetical income tax rate Tax benefit from permanent difference Effective tax rate 21.00 % % %
Hafnaoui Company reported pretax net income from continuing operations of $912,000 and taxable income of $587,500. The book–tax difference of $352,500 was due to a $235,000 favorable temporary difference relating to
a. Compute Hafnaoui Company's current income tax expense.
b. Compute Hafnaoui Company's
c. Compute Hafnaoui Company's effective tax rate.
d. Provide a reconciliation of Hafnaoui Company's effective tax rate with its hypothetical tax rate of 21 percent.
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