1. XYZ Corporation estimates its income, by calendar quarter, as follows for 2016:

1st 2nd 3rd 4th 2016

Quarter Quarter Quarter Quarter Total

Est. Income $30,000 $40,000 $35,000 $40,000 $145,000

Income tax rates applicable to XYZ Corporation:

From: $ 0 to $50,000 15%

From: $50,001 to $75,000 25%

Over: $75,000 35%

Required:

Determine XYZ Corporations estimated effective tax rate