Problem

The estimated and actual pretax incomes of Ent Corporation by quarter for 2011 were as fol...

The estimated and actual pretax incomes of Ent Corporation by quarter for 2011 were as follows:

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Estimated pretax income

$30,000

$30,000

$40,000

$50,000

Actual pretax income

30,000

40,000

40,000

40,000

Ent calculated its estimated annual effective income tax rate to be 27.8333 percent, based on estimated pretax income and existing income tax rates.

REQUIRED: Prepare a schedule to calculate Ent Corporation’s net income by quarter.

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Solutions For Problems in Chapter 15