5. In January 2016, Pin Company paid property taxes of $80,000 covering the calendar year 2016. Also in January 2016, Pin estimated that its year-end bonuses to executives would amount to $320,000 for 2016. What is the total amount of expense relating to these two items that should be reflected in Pin’s quarterly income statement for the three months ended June 30, 2016?

a $100,000 b $80,000 c $20,000 d $0 E 15-10 Interim tax The estimated pretax income of Ira PAT for each quarter in a year is as follows:

Quarter Income year-to-date First $340,000 Second 790,000 Third 1,500,000 Fourth 1,800,000 Segment and Interim Financial Reporting 523 Ira PAT estimated that the annual effective tax rate for this year is 22.5 percent.

Net Income Tax Rate

$0–$50,000 5%

$50,000–$150,000 10%

$150,000–$250,000 20%

$250,000–$500,000 25%

More than $500,000 30%

REQuIRED 1. Calculate tax expense that should be reported each quarter.

2. Calculate income that should be reported each quarter.

p R O B L E M S