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Alex Co., a calendar year end corporation, reported pretax income of S40,000 for the first quater of Year 5. The statutory tax rate for Year
Alex Co., a calendar year end corporation, reported pretax income of S40,000 for the first quater of Year 5. The statutory tax rate for Year 5 is 20%. Alex's effective annual income tax rate for Year 4 was 18%. As of the first quarter of Year 5, Alex calculated its first quarter effective tax rate to 15% and estimages its Year ETR will be 12%. What amount should Alex report as income tax expense in its interim income statement for the first quarter of Year 5.
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