Baker Company is trying to determine how often it needs to deposit payroll taxes for calendar year 2016. The company made the following quarterly payroll tax deposits during the last two years:
Quarter beginning January 1, 2014.......................$ 10,000
Quarter beginning April 1, 2014............................10,000
Quarter beginning July 1, 2014.............................11,000
Quarter beginning October 1, 2014. . . ....................12,000
Quarter beginning January 1, 2015 . . .......................12,000
Quarter beginning April 1, 2015 . . . . . . . . . .............12,000
Quarter beginning July 1, 2015 . . . . ......................11,000
Quarter beginning October 1, 2015 . . . ...................12,000
a. What is the amount from the lookback period?
b. In 2016 how often must Baker Company make payroll deposits?