Waverly Junior Apparel Incorporated reported pre-tax book income of $850,000 for the current year. The change in the difference in the basis of plant assets is $202,000;the book basis is higher than the tax basis. Waverly invested in tax-free bonds and earned $88,000 in nontaxable interest income (included in the pre-tax income of $850,000).Its income tax rate is 35%.

Prepare the footnote to reconcile the federal tax rate to the firm's effective income tax rate. Present the reconciliation in both dollars and percentages

Footnote Reconciliation Dollars Percentages %