In Y1 earnings before tax is $2,000 ($1,400 domestic and $600 foreign). During the year the firm had nondeductible

expenses of $200 and expenses of $120 that are not deductible in Y1, but deductible in Y2. The firm also took a U.S. tax credit

of $70. The foreign tax rate is 12%, and all book/tax differences apply to U.S. income. Determine the firms effective tax rate

for the year.