Please explain the reasoning for calculations as well as why the effective interest rate is different from the 35% federal statutory rate. Thank you!

Use the following to answer the question(s) below: In its 2018 annual report to shareholders, Black Inc. disclosed the following information about income taxes. A reconciliation of income taxes computed at the United States federal statutory income tax rate (35%) to the provision (benefit) for income taxes reflected in the Consolidated Statement of Operations for the years ended December 31, 2018, 2017, and 2016 is as follows ($ in millions): 2018 2017 2016 $5.2 (4.1) $(4.9) (4.3) $(11.3) (3.9) Provision (benefit) for income taxes at United States federal statutory rate of 35% State and local income taxes, net of federal income tax benefit Taxes on foreign income which differ from the United States statutory rate Losses with no tax benefit Benefit of foreign sales corporation. Other (2.5) 2.8 0.6 4.2 (0.7) 6.2 0.5 (0.23 0.9 $1.9 $ (7.6) $(10.2) The significant components of the net deferred tax assets at December 31, 2018 and 2017 were as follows ($ in millions): 2018 2017 $139.0 22.8 8.3 Deferred Tax Assets: Net operating loss carry forwards Sales incentive discounts. Inventory valuation reserves Postretirement benefits Other Valuation allowance Total deferred tax assets $141.6 30.6 15.0 7.8 64.2 (52.7) 206.5 8.2 74.1 (71.8) 180.6 24.2 17.9 Deferred Tax Liabilities: Tax over book depreciation Tax over book amortization of patent Other Total deferred tax liabilities Net deferred tax assets 23.5 18.2 19.1 60.8 $145.7 16.3 58.4 $122.2 13) Estimate the effective tax rate for Black Inc. in 2018. Why is it different from the 35% federal statutory rate? (8 pts)