Refer to Practice 16–3. Compute the effective tax rate.
From Practice 16-3
Interest revenue from municipal bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000
Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000
Warranty expenses (not deductible until actually provided;
none provided this year) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000