Bungles, Inc. reports net income before taxes on its income statement for 2016 (its first year of operations) in the amount of $1,300,000. Included in income is $100,000 in interest income from municipal bonds issued by the state of Ohio. Tax depreciation for the year is $250,000, while depreciation according to GAAP is $150,000. The applicable income tax rate for all relevant years is 40%

What is Bungles' effective income tax rate for 2016 (to 4 decimal points, e.g. 12.98%)?