Question $1(1\mathrm{.}5$ points$)$

$XYZ$ company has a statutory tax rate $of21\%.$ Determine the effective tax rate for

$XYZ$ Company $if$ the taxable income $is$ $$95,000,$ the pretax financial income $is$

$$106,000$ and the financial income subject $to$ tax $is$ $$120,000.$

$21\%$

$26\mathrm{.}53\%$

$23\mathrm{.}77\%$

$18\mathrm{.}83\%$