The following information is provided for Horizon Corporation for the year ending December 31, 2020: Book...

 

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The following information is provided for Horizon Corporation for the year ending December 31, 2020: Book earnings before income taxes Tax exempt interest income State income taxes (before Federal benefit) Annual increase in warranty reserve Total Foreign Income Tax Provision Tax over book depreciation for 2018 Current year increase in valuation allowance Entertainment expenses Foreign derived intangible income (FDII) special deduction $6,000 600 500 200 400 500 1,000 400 600 The U.S. statutory rate is 21%. Based on the information presented, prepare a rate reconciliation showing the dollar amount of each reconciling item (i.e. do not combine potentially immaterial amounts) and the impact of each reconciling item on the effective tax rate. The following information is provided for Horizon Corporation for the year ending December 31, 2020: Book earnings before income taxes Tax exempt interest income State income taxes (before Federal benefit) Annual increase in warranty reserve Total Foreign Income Tax Provision Tax over book depreciation for 2018 Current year increase in valuation allowance Entertainment expenses Foreign derived intangible income (FDII) special deduction $6,000 600 500 200 400 500 1,000 400 600 The U.S. statutory rate is 21%. Based on the information presented, prepare a rate reconciliation showing the dollar amount of each reconciling item (i.e. do not combine potentially immaterial amounts) and the impact of each reconciling item on the effective tax rate.

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