(C)

The tax bracket for the our corporation is 35%

The average tax rate is different from the tax bracket because firm pays tax on net income. Some
additional tax is paid in the previous year which is subtracted from the tax amount. There is also
deferred tax for the current year and also there is deferred tax for the prior year.

Also the tax effect of expenses is excluded in determining taxable income and is not charged to
profit and loss account.

The tax effect on exports and dividend income is also excluded.