Tor Corporation is subject to income tax rates of 20 percent on its first $50,000 pretax income and 34 percent on amounts in excess of $50,000. Quarterly pretax accounting income for the calendar year is estimated by Tor to be as follows:
Quarter | Estimated Pretax Income |
First | $20,000 |
Second | 30,000 |
Third | 60,000 |
Fourth | 50,000 |
Total | $160,000 |
No changes in accounting principles, discontinued items, unusual or infrequently occurring items, or extraordinary items are anticipated for the year. The fourth quarter’s pretax income is, however, expected to include $20,000 in dividends from domestic corporations, for which an 80 percent dividend-received deduction is available.
REQUIRED
1. Calculate the estimated annual effective tax rate for Tor Corporation for 2011.
2. Prepare a schedule showing Tor’s estimated net income for each quarter and the calendar year 2011.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.