Honk Kong Incorporated had first quarter pre- tax income of 225,000 and at the time estimated effective annual rate would be equal to the statutory rate of 40%

At the end of the second quarter, Hong Kong Inc estimated annual financial income would be 420,000 which includes a 22,000 environmental expense

Answer and Label Part A & B

A. Calculate Hong Kong Inc's Effective Tax Rate at the end of the second quarter

B, If Hong Kong Inc, Reported 70,000 of second quarter income, how much income tax expense should Hong Kong, Inc include in its second quarter interim financial statement