ETR

The following tax data is associated with a firm: Income tax expense of $25,000. Income taxes payable of $30,000. Pretax income of $80,000. 40% tax bracket. What is this firm’s alternative effective tax rate? A) 37.50%. B) 31.25%. C) 40.00%. D) 68.75% Pls help me on this one.

Taxes Payable/Pretax Income 30,000/80,000 = 37.50%

can it can be Tax Expense/Pretax income? then answer will be B I am confused

REPORTED effective tax rate = income tax expense (as on income statement)/pretax income 25/80 = 25 ALTERNATE effective tax rate = taxes payable (as on balance sheet)/pretax income 30/80 = 37.5