Question

Problem 5-52 (LO 5-3) For the current year, LNS corporation reported the following taxable income at the end of its first second, and third quarters. points Quarter-End First Second Third Cumulative Taxable Income $ 1,000,000 1,600,000 2,400,000 Print What are LNS's minimum first, second, third, and fourth quarter estimated tax payments, using the annualized income method? (Enter all amounts as positive values. Leave no answer blank. Enter zero if applicable. Round "Annualization Factor" for Fourth quarter to 7 places. Round other intermediate computations and final answers to the nearest whole dollar amount.) Installment Taxable Income Annualization Factor Annual Est. Taxable Income Tax on Estimated Taxable Income Percentage of Tax Required to be Paid Required Cumulative Payment Prior Cumulative Payments Required Estimated Tax Payment First quarter Second quarter Third quarter Fourth quarter

Answer 1

Solution piyet Second quarters ; $340000 ,third Quarter $136000, fourth quayler $272000 compuled as follows : Annualization Installment Tonable Income Annual Estimated Falloy Tax en percentage estimated of tax taxable income required to (flat 34%) be paid 14) = (3) X34 (5) Required prior Cumulative cumulative curculat payment payment Required estimated tore payment taxable income (2) (3) = (0) X(2) 16) =(4)X(5) 0516)-(9) 15 quarter $1000000 123 - 4 $ LOOO000 $ 1360000 25.1. 340000 4 340000 $ 340000 and quarter $ 340000 $1000000 1213 = 4 $ 1360000 $ 4000000 50/ 680000 310 quarter $136000 $1600000 1216 = 2 $3200000 75/ 1088000 $816000 $ 680000 100./. $ 1089000 $816000 4th quarter $272000 1088000 $3200000 $3200000 1219 = 1-3333