TarHeel Corporation reported pretax book income of $1,028,000. During the current year, the net reserve for warranties increased by $29,200. In addition, tax depreciation exceeded book depreciation by $107,000. Finally, TarHeel subtracted a dividends received deduction of $30,600 in computing its current year taxable income. Assume a tax rate of 34%. TarHeel's accounting effective tax rate is:

32.99%

34%

31.47%

30.46%