At the end of the second quarter of 201, Malta Corporation assembled the following information 1. The first quarter resulted in a $94,000 loss before toves. During the second quarter, sales were $1,204,000; purchases were $654,000, and operating expenses were $324,000 2 Cost of goods sold is determined using the FFO method. The inventory at the end of the first quarter was reduced by $8,000 to a lower of cost-or-market figure of $82,000. During the second quarter, replacement costs recovered, arid by the end of the period, market value exceeded the ending inventory cost by $5,250 3. The ending inventory is estimated using the gross profit method The estimated gross profit rate is 46 percent. 4 At the end of the first quarter, the effective annual tax rate was estimated at 45 percent. At the end of the second quarter, expected annual income is $1,000,000 An investment tax credit of $15,000 and dividends-receved deduction of $150,000 are expected for the year The combined state and federal tax rate 1540 percent. 5. The tax benefits from operating losses are assured beyond a reasonable doubt. Required: a. Calculate the expected effective annual tax rate at the end of the second quarter for Malta b. Prepare the income statement for the second quarter of 201 Your solution should include a computation of income tax (or benefit) for the first and second quarters Complete this question by entering vour answers in the tabs below. Calculate the expected effective anmual tax rate at the and of the second quarter for Malta. Note: Round your answer to 1 decimal place. Required: a. Calculate the expected effective annual tax rate at the end of the second quarter for Maito. for the first and second quarters Complete this question by entering your answers in the tabs below. Prepare the income statement for the second quarter of 201. Required: a. Calculate the expected effective onnuol tax rate at the end of the second quarter for Malta b. Prepare the income statement for the second quarter of 20x1. Your solution should include a computation of income tax (or benefit) for the first and second quarters. Complete this question by entering your answers in the tabs below. Your solution should include a computation of income tax (or benefit) for the first and second quarters. Notei Negative amounts should be entered with minus sign. Round your percentage answers to 1 decirmal place