Question

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 $ 1,000,000 1,600,000 2,400,000 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 Required Cumulative Estimated Tax Payments Payment First quarter Second quarter Third quarter Fourth quarter

Answer 1

Installment Tanable income Annualized factor Annual estimated taxable income 2nd $ 1000000 $1000000 $ 1600000 $ 2400000 12/3=4 12/3=4 12/6=2 12/9=1-333 $4,000,000 $ 14,000,000 $ 3,200,000 83199920 ton Installment Tor Required Prior Tax on estimated income (2) Flat 34.1 income % of tax required to be paid (3) Required estimated tan payments comm poum comm payment (6) -243 - $ 40,00,000 $ 40,00,000 $ 3200,000 $ 31,99,920 2 3 y $13,60,000.00 $13,60,000.00 $10,88,000.00 $10,87,972.80 95% $340000 - $340000 5011, $680,000 $340000 $340000 751 $ 8,16,000 $680000 $136000 10014 $10,84,972.80 4816000 $ 2719720 w