Calculating the amount of temporary and permanent differences and tax entry $($LO $14-2,$ LO $14-4,$ LO $14-9)$

The following information pertains to Ramesh Company for $20$X$1$:

Book income before income taxes

$$106,000$

Income tax expense

$27,300$

Income taxes due for this year

$16,800$

Statutory income tax rate

$21\%$

The company has one permanent difference and one temporary difference between book and taxable income.

Required:

Calculate the amount of temporary difference for $20$X$1$ and indicate whether it causes book income to be more or less than taxable income.

Calculate the amount of permanent difference for $20$X$1$ and indicate whether it causes book income to be more or less than taxable income.

Provide the journal entry to record income tax expense for $20$X$1.$

Compute the effective tax rate $($that is$,$ income tax expense divided by book income before taxes$).$ Explain why this rate differs from the statutory tax rate of $21\%.$