Which of the Following Will Cause the Reported Effective Tax

Multiple Choice

Which of the following will cause the reported effective tax rate to differ from the federal statutory tax rate?

I. Foreign tax rates that are lower than federal statutory tax rate
II. Tax-exempt income
III. Different depreciation methods for tax and financial reporting purposes
IV. Foreign tax rates that are higher than federal statutory tax rate

A) I, II, and IV
B) I, II, and III
C) I and II
D) III only