Question

Check my work For the current year, LNS corporation reported the following taxable income at the end of its first, second, and third quarters. Quarter- End First Second Third Cumulative Taxable Income $1,760,000 2,755,000 3,765,000 10 points eBook Hint 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.) References 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 Required Cumulative Estimated Tax Payments Payment First quarter Second quarter Third quarter Fourth quarter

Answer 1

Please find below table useful to compute desired results: -

Н Annual Estimated |Тахable Income Required Estimated Cumulative Tax Payments |=G2-H2 =G3-H3 |=G4-H4 =G5-H5 Тах on Estimated %age of tax Required Income Flat required to be cumulative paid =25/100 =50/100 Prior Annualized Factor |=12/3 Taxable Payment 1 installment 21% |=D2*21% =D3*21% |=D4*21% =D5*21% |payment |-E2*F2 |-E3*F3 |-E4*F4 |-E5*F5 income 1760000 =B2*C2 =B3*C3 =B4"C4 |=B5*C5 |=12/3 |=12/6 =G2 |=G3 3 2 1760000 2755000 3765000 =75/100 4 3 =100/100 5 4 =12/9 =G4 2.

End results would be as follows: -

B Н %age lof tax Тах on Annual Required Cumulativ Estimated Tax Payment Payments 369,600 739,200 369,600 369,600 867,825 739,200 128,625 Prior Estimated require Required Income Flat d to be cumulative e payment Annual Estimated install Taxable Taxable ized Factor Income paid 4.00 7,040,000 | 1,478,400 4.00 7,040,000 | 1,478,400 2.00 5,510,000 | 1,157,100 1.33 5,020,000 | 1,054,200 21% ment income 25% 1,760,000 369,600 2 2 1,760,000 50% 3 2,755,000 75% 4 4| 3,765,000 100% 1,054,200 867,825 186,375