13. The Hardware operating segment of Bloom Corporation has the following revenues for the year ended December 31, 2018:

Sales to outsiders	$	417,000
Intersegment transfers		23,000
Interest revenue outsiders		7,000
Interest revenue intersegment loans		33,000
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For purposes of the revenue test, what amount will be used as total revenues of the Hardware operating segment?

A) $424,000.

B) $440,000.

C) $480,000.

D) $417,000.

E) $460,000.

14. Provo, Inc. has an estimated annual tax rate of 35 percent in the first quarter of 2018. Pretax income for the first quarter was $300,000. At the end of the second quarter of 2018, Provo expects the annual tax rate to be 32 percent because of anticipated tax credits. Pretax income for the second quarter was $350,000. Assume no items in either quarter requiring the net-of-tax presentation.

How much income tax expense is recognized in the first quarter of 2018?

A) $96,000.

B) $26,250.

C) $112,000.

D) $105,000.

E) $0.