Noventis Corporation prepared the following estimates for the four quarters of the current year: First Quarter $ 1,600,000 460,000 370,000 Second Quarter $ 1,920,000 540,000 215,000 100,000 Third Quarter $2,240,000 610,000 220,000 Fourth Quarter $ 2,560,000 660,000 230,000 Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs oooo 100,000 76,000 84,000 Additional Information First-quarter administrative costs include the $110,000 annual insurance premium. Advertising costs paid in the second quarter relate to television advertisements that will be broadcast throughout the entire year. No special items affect income during the year. Noventis estimates an effective income tax rate for the year of 40 percent. a. Assuming that actual results do not vary from the estimates provided, determine the amount of net income to be reported each quarter of the current year. b. Assume that actual results do not vary from the estimates provided except for that in the third quarter, the estimated annual effective income tax rate is revised downward to 38 percent. Determine the amount of net income to be reported each quarter of the current year. Net Income $ 457,500 628,500 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 775,500 931,500 $ 457,500 628,500 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 801,350 962,550