$1$

Required informetion

Problem $18-38($LO $18-2)($Algo$)$

$[$The followng information apples to the questions displayed below$]$

This yeat, Sooner Company reports a defict in current ESP of $($$$478,000)$ its accumulated EAP at the beginning of the year was $$392\mathrm{.}000$ Sooner distributed $$784,000$ to its sole shareholder, Boomer, on June $30$ of this year Boomer's tax basis is the Sooner stock belore the dintribuion is $$20,000$

Note: Letve no antwer blank. Emer zere if applicables. Nepstive amount shovid be indicsted by a minus sign.

Problem $10-30$ Pert $1$

Required informetion

Problem $18-38($LO $18-2)($Algo$)$

$[$The followng information apples to the questions displayed below$]$

This yeat, Sooner Company reports a defict in current ESP of $($$$478,000)$ its accumulated EAP at the beginning of the year was $$392\mathrm{.}000$ Sooner distributed $$784,000$ to its sole shareholder, Boomer, on June $30$ of this year Boomer's tax basis is the Sooner stock belore the dintribuion is $$20,000$

Note: Letve no antwer blank. Emer zere if applicables. Nepstive amount shovid be indicsted by a minus sign.

Problem $10-30$ Pert

$!$

Required information

$[$The following information applies to the questions displayed below$]$

Hafnooul Company reported pretax net income from continuing operations of $$832,000$ and taxable income of $$517,000.$ The book$-$tax difference of $$315,000$ was due to a $$210,000$ fovorable temporary difference relating to depreciation, an unfavorable temporary difference of $$84,000$ due to an increase in the reserve for bad debts, and a $$189,000$ favorable permanent difference from the receipt of life insurance proceeds. At the end of the year, the reserve for bad debts had a balance of $$105,000$; the beginning balance in the account was $$21,000.$ Hafnaou's beginning book $($tax$)$ basis in its foved assets was $$1,004,000($ $$806,000)$ and its ending book $($tax$)$ basis is $$1,510,000($ $$1,102,000).$

d$.$ Provide a reconciliation of Hafnaoul 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.