Hafnaoui Company reported pretax net income from continuing operations of $903,500 and taxable income of $712,500. The book–tax difference of $191,000 was due to a $242,000 favorable temporary difference relating to depreciation, an unfavorable temporary difference of $117,000 due to an increase in the reserve for bad debts, and a $66,000 favorable permanent difference from the receipt of life insurance proceeds. The question is, "compute Hafnaoui company's effective tax rate?