A firm’s income statement included the following data. The firm’s average tax rate was 20%.

Question: What does the average tax rate of 20% represent in the context of the firm's income statement?

A) The percentage of total income that the firm paid in taxes.
B) The tax rate applied to the firm's highest income bracket.
C) The tax rate applied to the firm's lowest income bracket.
D) The percentage of net income after taxes.