Part E

Estimated tax information: XYZ made four equal estimated tax payments totaling $360,000 ($90,000 per quarter). For purposes of estimated tax liabilities, assume XYZ was in existence in 2019 and that in 2019 it reported a tax liability of $500,000. During 2020, XYZ determined its taxable income at the end of each of the four quarters as follows: Quarter-end First Second Third Cumulative taxable income (loss) $ 488,eee $ 1,100,000 $ 1,408, cea 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.) e. Determine the quarters for which XYZ is subject to underpayment of estimated tax penalties. (Round "Annualization Factor" for Fourth quarter to 2 decimal places.) Answer is complete but not entirely correct. Installment (1) Required cumulative payment (per quarter) under prior year tax method (2) Estimated tax payment under annualized method (3) Required payment based on current year tax liability (4) Required cumulative payment (5) Actual payments Underpayment penalty IS IS 84,000 IS No 125,000 250,000 IS $ Is 1 st quarter 2nd quarter 3rd quarter 4th quarter No 168,000 348,500 0 Xs 293,498 X $ 440,247 X $ 586,998 X ls 84,000 84,000 Xs 408,000 $ 500,000 90.000 180,000 270,000 360,000 DOO O IS IS 375,000 500,000 IS Yes Yes Is Is 392,000 s