Reference no: EM132872131

Question - MFB Ltd. has provided you with some information about its income tax return for its first year of operations that ended on December 31, 20X1:

Net income before income tax for 20X1 = 300,000

Taxable temporary differences arising in 20X1 = 90,000

Permanent differences deducted from income on the 20X1 tax return = 60,000

Current income tax expense reported on the 20X1 income statement = 37,500

Deferred income tax expense reported on the 20X1 income statement = 22,500

Required -

1: Find the current and future income tax rates are the same for this year. What is this rate - round your answer to the nearest percent - for example if you calculated 17.4% enter the number 17.

2: Find the effective income tax rate this year - round your answer as described above.