In the rate reconciliation of GAAP tax footnotes, temporary book-tax differences are reconciled between book income as if taxed at U.S. tax rates and the actual book income tax expense.

Question

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Temporary book-tax differences are reconciled in the deferred tax section, not in the rate reconciliation, which focuses on reconciling the statutory tax rate to the effective tax rate.

In the Rate Reconciliation of GAAP Tax Footnotes, Temporary Book-Tax