Determining the tax expense traceable to various components of income. McClure Manufacturing reported a pretax loss from operations of $45,000 for the first quarter of 2017. The estimated effective...

Determining the tax expense traceable to various components of income. McClure Manufacturing reported a pretax loss from operations of $45,000 for the first quarter of 2017. The estimated effective annual tax rate at that time was based on the following information:

1. A statutory tax rate of 32% and annual estimated tax credits of $7,000.

2. Projected annual pretax loss of $70,000.

3. Taxable income of $12,000 and $10,000, respectively, for 2015 and 2016.

4. Statutory tax rates in 2015 and 2016 of 30% and 28%, respectively.