Question

Problem 5-50 (LO 5-3) [The following information applies to the questions displayed below.) Last year, TBA Corporation, a calendar-year taxpayer, reported a tax liability of $100,000. TBA confidently anticipates a current-year tax liability of $240,000. What minimum estimated tax payments should TBA make for the first second, third, and fourth quarters, respectively (ignore the annualized income method), assuming the following: (Leave no answer blank. Enter zero if applicable. Input all your answers as positive numbers.) Problem 5-50 Part a a. TBA is not considered to be a large corporation for estimated tax purposes. Installment Estimated Tax Liability 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

Sw೨ page:01 According to the problem Required @ Determination of Estimated tax payments if TBA colpitation is not considered to be a large corporation for estimated tax purposes. Corporation is notconsidered as a large Corporation for the estimated taxe propose, then the required estimated annual payment shall be lessen of the fax liability in prior year and the tax liability in cuerstent year 1 Therefore, the required annual payment shall be $100,000 ; which is lesson of ¢100,000 and $240000. Estimated | percentage of Required prior | Required Cumula Estimated tar required Cumulative 7 tive Tax installment tax liability to be paid payment payments payment First quarter 100,000 2054 $25.000 25000 second quarter $100,000 5011. {50,000 25000 155000 Thind quarter $100,000 $75,000 150,000 $25000 fowith quarter $100,000 100%. $100,000 $75,000 95000 75.

payments, page:02 ax b) determination & Estimated Taxe payments, * TBA corporation is considered to be louge colporation fo4 estimated tax perpose where the corporation is considered as a large corporation for the estimated for purpose, then for the purpose of nequined estimated annual payment in the first Quarter alone can use the previous year. tax liability but for the subsequent 3 payments, it shall use the current year estimated fax liability Estimated Tax . Minstallment liability First Quarter 1.100.000 Second Quarter # 940,000 third Quarter $ 240,000 Quarter 940,000 percentage Required prior Requívod of toux reg. cumulative Cumulative Estimated tase ancel fobe paid payment payments payment 2560 $ 25000 $ 25,000 5014 $_100000 $ 95,000 $95.000 75*1. $ 180000 $ 190,000 160,000 1001, # $40000 $180,000 $60,000. fourth