Baxter Corporation anticipated pretax values for the current year as follows:Continuing operations. .. … . . . . .. . . .. . .. …. . $ 60,000 Non-ordinary items:Item A… . .. …. .. …. . .. … . .. …...

Baxter Corporation anticipated pretax values for the current year as follows: Continuing operations. .. … . . . . .. . . .. . .. …. . $ 60,000 Non-ordinary items: Item A… . .. …. .. …. . .. … . .. … .. .. . . . (30,000) Item B… . .. …. .. …. . .. … . .. … .. .. . . . 25,000 Item C… . .. …. .. …. . .. … . .. … .. .. . . . 5,000 Total …………….. $ 60,000 The statutory tax rates are as follows: 15% on the first $50,000, 25% on the next $25,000, 34% on the next $25,000, and 39% on amounts in excess of $100,000. Determine the tax expense traceable to non- ordinary items B and C. View Solution:

Baxter Corporation anticipated pretax values for the current year as