13 42 bints Problem 8-39 (Algo) (LO 8-6) Solaris Corporation prepared the following estimates for the four quarters of the current year: First Quarter Second Quarter Sales eBook $ 1,400,000 $ 1,680,000 Cost of goods sold References Administrative costs 440,000 330,000 520,000 195,000 Third Quarter $ 1,960,000 590,000 200,000 Advertising costs Executive bonuses 0 140,000 0 Provision for bad debts Annual maintenance costs 76,000 Fourth Quarter $ 2,240,000 640,000 210,000 0 84,000 68,000 0 raw Check my work Additional Information First-quarter administrative costs include the $180,000 annual insurance premium. Advertising costs paid in the second quarter relate to television advertisements that will be broadcast throughout the entire year. No special items affect income during the year. The company estimates an effective income tax rate for the year of 25 percent. a. Assuming that actual results do not vary from the estimates provided. determine the amount of net income to bet < Prev 13 of 14 Next >