Waypine Enterprises reported a pretax operating loss of $84,000 in 2014, its first year of operations, and recognized a tax benefit of $6,000, based on the assumption that $40,000 of the loss could be offset against future pretax income. Management anticipates that there will be pretax operating income in the first six months of 2015 of $60,000 traceable to existing operations. However, additional income (loss) for the year is dependent on which of several strategies the company begins to pursue in the second quarter of 2015. Those strategies are as follows:

Strategy AExisting operations would generate pretax income of $30,000 for the balance of the year and a new operating unit would begin operations in the second quarter of 2015, with projected pretax operating income (loss) of ($85,000), ($40,000), and ($20,000) for 2015 quarters 2 through 4, respectively. It is more likely than not that the operating units would generate pretax operating income of $30,000 in each of the next two years.

Strategy BExisting operations would generate pretax loss of ($30,000) for the balance of the year and a 40 percent interest would be acquired in a limited liability company (LLC). The 40 percent interest would result in Waypine recognizing pretax income (loss) of ($40,000), $16,000, and $20,000 for 2015 quarters 2 through 4 respectively. It is likely that Waypine would recognize pretax operating income of $30,000 in 2016, traceable to this investment. Furthermore, it is anticipated that Waypine would dispose of its 40 percent interest in late 2016, resulting in a recognized gain of approximately $35,000.

Strategy CExisting operations would generate pretax income of $30,000 for the balance of the year and construction would begin on a new research and development (R&D) center. The R&D center would become operational in the third quarter of 2015 and generate net licensing pretax income of $50,000 in 2015, along with income tax credits of $5,000.

Assume that the statutory tax rates in 2015 are 15 percent on the first $50,000 of income, 25 percent on the next $50,000 of income, and 30 percent on all remaining income. Calculate the estimated effective tax rate to be applied to income in the first six months of 2015, given each of the above strategies.