Last year, Cougar Corp. (CC) reported a net operating loss of $25,000. In the current year, CC expected its current year tax liability to be $440,000 so it made four equal estimated tax payments of $110,000 each. Cougar closed its books at the end of each quarter. The following schedule reports CC's taxable income at the end of each quarter:
Quarter-end Cumulative taxable income
First.............................................$300,000
Second ..........................................$700,000
Third..........................................$1,000,000
Fourth.........................................$1,470,588
CC's current year tax liability on $1,470,588 of taxable income is $480,000. Does CC owe underpayment penalties on its estimated tax payments? If so, for which quarters does it owe the penalty?