Baltimore Inc. reported pretax GAAP income of 99,000 in 2020. In analyzing differences between GAAP income and

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Baltimore Inc. reported pretax GAAP income of 99,000 in 2020. In analyzing differences between GAAP income and taxable income, the company determined that it had deducted $13,000 in nondeductible fines and added $7,280 in tax-exempt municipal interest revenue to GAAP income. The statutory tax rate is 25%.

Prepare a reconciliation between Baltimore Inc.’s effective and statutory tax rates.

Enter the percent rounded to one digit after the decimal; for example, enter 8.4 for 8.44%, or 8.5 for 8.45%.

	Percentage
Statutory tax rate
Tax-exempt income
Non-deductible expense
Effective tax rate

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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Posted Date: Jul 07, 2022 07:26 PM

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Baltimore Inc. reported pretax GAAP income of 99,000 in 2020. In analyzing differences between GAAP income and

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Solution pretax Income Non deductible fines 99000 13000 Tax e... View the full answer

Intermediate Accounting

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