Last year, Cougar Corp. (CC) reported a net operating loss of $25,000. In the current year, CC expected its current-year tax liability to be $260,000 so it made four equal estimated tax payments of $65,000 each. Cougar closed its books at the end of each quarter. The following schedule reports CCs taxable income at the end of each quarter.

Quarter-End	Cumulative Taxable Income
First	$	300,000
Second		700,000
Third		1,000,000
Fourth		1,500,000

CCs current-year tax liability on $1,500,000 of taxable income is $315,000.

Problem 16-55 Part b

b. Which quarters does it owe the penalty? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)