Hi Vjvgoe, this question has the same fact pattern as the question asked yesterday. Please help with this part of the question. If you are able to please reply as I don't have much time to turn this in. thank you

XYZ Is a calendar-year corporation. For 2016. It reported the following information In its current year audttecl income statement. Notes with important tax information are provEcled below. XYZ corp. Income statement Book For current year Income Revenue from safes $40,000,000 Cost of Goods Sold (27,000,000) Gross prot 3; 13,000,000 Other income: Income from investment in corporate stock 300.0001 Interest income 20,0002 Capital gains (losses) (4,000) Gain or loss from disposition afxed assets 3,0003 Miscellaneous income 50,000 Gross Income 3 13,369,000 Expenses: Compensation {7,500,000)'1 Stock option compensation [200,000)5 Advertising (1,350,000) Repairs and Maintenance (75,000) Rent (22,000) Bad Debt expense {41,000)5 Depreciation {1.400.000}7 Warranty expenses (70,000)a Charitable donations [500,000}'3 Meals and entertainment (13,000) Goodwill impairment (30,000)"j Organizational expenditures (44,000)\" Other expenses (1:40.000)'2 Total expenses $ (11,390,000) Income before taxes 3 1,979,000 Provision for income taxes {720,000)'3 Net Income after taxes 3 1,259,000\" Notes: 1. XYZ owns 30 percent of the outstanding Hobbie Corp. (HG) stock. Hobble Corp. reported $1,000,000 of income 'for the year. XYZ accounted 'for Its investment In HC under the equity method and it recorded its pro rata share of HC's earnings for the year. HC also distributed a $200,000 dividend to XYZ. 2. 0f the $20,000 interest income, $5,000 was from a City of Seattle bond (issued in 2014) that was used to 'fund public activities, $7,000 was from a Tacoma City bond (issued in 2014) used to fund private activities. $6,000 was from a fully taxable corporate bond, and the remaining $2,000 was from a money market account. 3. This gain is from equipment that XYZ purchased in February and sold in December [i.e., it does not qualify as Q1231 gain). 4. This includes total oicer compensation of $2,500,000 [no one oicer received more than $1,000,000 compensation). 5. This amount is the portion of incentive stock option compensation that was expensed during the year [recipients are officers). 6. XYZ actually wrote off $27,000 of its accounts receivable as uncoliectible. 7. Regular tax depreciation was $1,900,000 and AMT (and ACE) depreciation was $900,000. 8. In the current year, XYZ did not make any actual payments on warranties it provided to customers. 9. XYZ made $500,000 of cash contributions to qualified charities during the year. 10. On July1 of this year XYZ acquired the assets of another business. In the process it acquired $300,000 of goodwill. At the end ofthe year, XYZ wrote off $30,000 o'fthe goodwill as impaired. 11. XYZ expensed all of its organizational expenditures for book purposes. XYZ expensed the maximum amount of organizational expenditures allowed for tax purposes. 12. The other expenses do not contain any items with book-tax differences. 13. This is an estimated tax provision (federal tax expense] for the year. Assume that XYZ is not subject to state income taxes. 14. XYZ calculated that its domestic production activities deduction {DPAD} is $90,000. This amount is not included on the audited income statement numbers. Estimated tax information: XYZ made four equal estimated tax payments totaling $480,000. Assume for purposes of estimated tax liabilities, XYZ was in existence in 2015 and it reported a tax liability of $800,000. During 2016, XYZ determined its taxable income at the end of each of the four quarters as follows: Cumulsthretaxable Quarter-end Income [loss] First 5 350,000 Second S 800,000 Third 5 1,000,000 Finally, assume that XYZ is not a large corporation for purposes of estimated tax calculations. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) 9. Determine the quarters for which XYZ is subject to underpayment of estimated taxes penalties (see estimated tax information below). 1st quarter 2nd quarter 3rd quarter 4th quarter 9. Determine the quarters for which XYZ is Subject to underpayment of estimated taxes penalties (see estimated tax information below). Answer Is complete but not entirely correct 1st quarter $ 150.000! $ 119,000J $ 146349! $ 119,00w $ 120.000J J 2nd quarter 0 300.000! $ 230,000.} 3 293.4988 s 233,000J $ 240.000J No J 3rd quarter 0 450.000! 0 403,000.} 0 440.247: 5 403,000J $ 330.000J Yes J 4th quarter 0 000.000x s 453,333.} 0 586.996! 3 453,3an $ 400.000J No J Answer Is complete but not entirely correct 1st quarter 5 150.000x s 119.000J s 143,610J $ 119,000J s 120,000J J 2nd quarter 0 000.000x s 233.000J s 29?,220J $ 233,000J s 240,000J N0 J 3rd quarter 0 450.000x s 403.000J s 445.830! $ 400,000J s 330,000J Yes J 4th quarter 0 000.000! s 453.3an s 594,442J $ 453,333.] 3 430,000J N0 J 9. Determine the quarters for which XYZ is Subject to underpayment of estimated taxes penalties (see estimated tax information below). Answer Is complete but not entirely correct 1st quarter $ 150.000! $ 119,000J $ 146349! $ 119,00w $ 120.000J J 2nd quarter 0 300.000! $ 230,000.} 3 293.4988 s 233,000J $ 240.000J No J 3rd quarter 0 450.000! 0 403,000.} 0 440.247: 5 403,000J $ 330.000J Yes J 4th quarter 0 000.000x s 453,333.} 0 586.996! 3 453,3an $ 400.000J No J Answer Is complete but not entirely correct 1st quarter 5 150.000x s 119.000J s 143,610J $ 119,000J s 120,000J J 2nd quarter 0 000.000x s 233.000J s 29?,220J $ 233,000J s 240,000J N0 J 3rd quarter 0 450.000x s 403.000J s 445.830! $ 400,000J s 330,000J Yes J 4th quarter 0 000.000! s 453.3an s 594,442J $ 453,333.] 3 430,000J N0 J