Hafnaoul Company reported pretax net income from continuing operations of $800,000 and taxable income of $500,000. The book-tax difference of $300,000 was due to a $200,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $80,000 due to an increase in the reserve for bad debts, and a $180,000 favorable permanent difference from the receipt of life Insurance proceeds. Problem 06-75 Part d (Static) d. Provide a reconciliation of Hafnaoul Company's effective tax rate with its hypothetical tax rate of 21 percent. Note: Amounts to be deducted should be Indicated by a minus sign. Round your percentages to 2 decimal places. ETR reconciliation (in $) Income tax expense at 21% Answer is not complete. $ 37,800 Tax benefit from permanent difference Income tax provision ETR reconciliation (in %) Hypothetical income tax rate 21.00 % Tax expense from permanent difference %6 Effective tax rate 16.28 %