Required information [The following information applies to the questions displayed below] Hafnaoui company reported pretax net income from continuing operations of $1,136,000 and taxable income of $678,500. The book-tax difference of $457,500 was due to a $305,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $122,000 due to an increase in the reserve for bad debts, and a $274,500 favorable permanent difference from the receipt of life insurance proceeds. At the end of the year, the reserve for bad debts had a balance of $152,500; the beginning balance in the account was $30,500. Hafnaou's beginning book (tax) basis in its fixed assets was $1,042.000($863,000 ) and its ending book (tax) basis is $1,605,000($1,121,000) c. Compute Hafnaoui Company's effective tax rate. Note: Round your answer to 2 decimal places