Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For the current year, LNS corporation reported the following taxable income at the end of its first, second, and third quarters. Quarter-End Cumulative Taxable Income

For the current year, LNS corporation reported the following taxable income at the end of its first, second, and third quarters.

Quarter-End Cumulative Taxable Income
First $ 1,000,000
Second 1,600,000
Third 2,400,000

What are LNSs minimum first, second, third, and fourth quarter estimated tax payments determined using the annualized income method? (Enter all amounts as positive values. Leave no answer blank. Enter zero if applicable. Round "Annualization Factor" for Fourth quarter to 7 places. Round other intermediate computations and final answers to the nearest whole dollar amount.)

Installment Taxable Income Annualization Factor Annual Est. Taxable Income Tax on Estimated Taxable Income Percentage of Tax Required to be Paid Required Cumulative Payment Prior Cumulative Payments Required Estimated Tax Payment
First quarter $1,000,000selected answer correct 4selected answer correct $4,000,000 $1,360,000selected answer incorrect 25selected answer correct % $340,000 $0selected answer correct $340,000selected answer incorrect
Second quarter $1,000,000selected answer correct 4selected answer correct $4,000,000 $1,360,000selected answer incorrect 50selected answer correct % $680,000 $340,000selected answer incorrect $340,000selected answer incorrect
Third quarter $1,600,000selected answer correct 2selected answer correct $3,200,000 $1,088,000selected answer incorrect 75selected answer correct % $816,000 $680,000selected answer incorrect $136,000selected answer incorrect
Fourth quarter $2,400,000selected answer correct 1.3333333selected answer correct $3,200,000 $1,088,000selected answer incorrect 100selected answer correct % $1,088,000 $816,000selected answer incorrect $272,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Process Principles Practice And Cases

Authors: Iain Gray, Louise Crawford, Stuart Manson

7th Edition

1473760186, 9781473760189

More Books

Students also viewed these Accounting questions