Changi Co. has the following information related to income t…
Changi Co. has the following information related to income taxes. All items have been properly accounted for in its financial statements. Item Source Amount Income (Loss) Before Income Tax Expense Income Statement $5,000,000 Income Tax Expense Income Statement $1,200,000 Income Tax Payable for the year Footnote $1,500,000 Fine levied (incurred) for illegally polluting Footnote $1,000,000 The income tax rate is 21% for all years. What is Changi Co.’s effective tax rate? (Ignore any minor rounding differences)
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