Supra Incorporated estimates total federal and state tax rates to be $40$ percent. Expected annual pretax earnings from continuing operations are $$1,280,000.$ Differences between tax income and financial statement income are expected to be the following:

Dividend exclusion for dividends received on the company's stock investments Tax$-$exempt income received

Premiums for life insurance on officers for which the company is the beneficiary

$$77,00$

$21,000$

$12,600$

A business tax credit of $$41,400$ should be available. Supra's first$-$quarter pretax earnings is $$175,000,$ which includes a loss from discontinued operations of $$31,800$ before any tax effect of that loss.

Requlred:

a$.$ Estimate Supra's effective combined federal and state tax rate on income from continuing operations for the year.

b$.$ Prepare the entry to record the tax provision for the income from continuing operations for the first quarter.

Complete this question by entering your answers in the tabs below.

Required A

Required $B$

Estimate Supra's effective combined federal and state tax rate on income from continuing operations for the year.

Note: Round tax rate to whole percentage.

Estimated effective annual tax rate

$\%$