Brown Tax Services, Incorporated, provides income tax preparation services to its customers. Fee revenues are highly seasonal during the four quarters of the calendar year and occur in the following percentages:

During the first quarter of 1979 , fee revenues totaled \(\$ 360,000\).
a Determine net income for the first quarter assuming that operating costs are assigned equally to each of the four quarters during the year.
b Determine net income for the first quarter assuming that operating costs are assigned to each quarter in proportion to the percentage of the anticipated year's revenues recognized during each quarter.
c If the pattern of fee revenues during 1979 occurs as anticipated (that is, \(.60, .20, .10\), 10), what is the anticipated net income for the year?
d Which of the interim earnings measures determined in parts \(\mathbf{a}\) and \(\mathbf{b}\) will lead to the more accurate prediction of the annual net income calculated in part \(\mathbf{c}\) ?

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Quarter First (1/1-3/31) Second (4/1-6/30) Third (7/1-9/30) Fourth (10/1-12/31) Percentage 60% 20% 10% 10% The following operating costs were anticipated and actually incurred evenly throughout the year ended December 31, 1979: Salaries Rent. Insurance Total. $250,000 125,000 25,000 $400,000