Chris Inc. has the following information for its second-quarter income statement for 2020: . Sales = $800,000 Cost of Goods Sold = $400,000 Operating Expenses = $200,000 . . Additional information: First-quarter income before taxes was $100,000, and the estimated effective annual tax rate was 30%. At the end of the second quarter, expected annual income is $500,000, and a dividend exclusion of $20,000 and a business tax credit of $12,000 are anticipated. The combined state and federal tax rate is 40%. The $400,000 Cost of Goods Sold (based on the LIFO method) includes 10,000 units liquidated from the base layer at a cost of $10 per unit. However, these units are expected to be replaced at a cost of $25 per unit. The operating expenses of $200,000 include a $80,000 factory, rearrangement cost incurred in April. The second quarter will receive 25% of the benefits from this project with the remainder benefitting the third and fourth quarters Identify the following statements that are TRUE. Cost of Goods Sold for the second quarter is $250,000. Operating Expense for the second quarter is $140,000. Income Tax Expense for the first quarter is $30,000. The effective income tax rate expected at the end of the second quarter is 36%