PLEASE FILL OUT THIS CHART THE SAME WAY IT IS SET UP. DO NOT DO THE M-1 FORM...JUST PART E.
[The following information applies to the questions displayed below.] XYZ is a calendar-year corporation that began business on January 1, 2020. For the year, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. Use Exhibit 16-6. XYZ corp. Income statement For current year Revenue from sales Cost of Goods Sold Gross profit Book Income $ 40,000,000 (27,000,000) $ 13,000,000 300,0001 20,0002 (4,000) 3, 0093 50,000 $ 13,369,000 Other income: Income from investment in corporate stock Interest income Capital gains (losses) Gain or loss from disposition of fixed assets Miscellaneous income Gross Income Expenses: Compensation Stock option compensation Advertising Repairs and Maintenance Rent Bad Debt expense Depreciation Warranty expenses Charitable donations Meals Goodwill impairment Organizational expenditures Other expenses Total expenses Income before taxes Provision for income taxes Net Income after taxes 8 (7,500,000) (200,000)5 (1,350,000) (75,000) (22,000) (41,000,6 (1,400,000)? (70,000) (500,000) (18,000) (30,000,10 (44,000,11 (140,000)1 $(11,390,000) $ 1,979,000 (400,000, 13 $ 1,579,000 12 ma taxes. 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) $ 400,000 $ 1,100,000 $ 1,400,000 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.) 2. Determine the quarters for which XYZ is subject to underpayment of estimated tax penalties. (Round "Annualization Factor" for Fourth quarter to 2 decimal places.) Installment (1) Required cumulative (2) Estimated tax (3) Required payment (per payment under payment based on quarter) under prior annualized method current year tax year tax method liability (4) Required cumulative payment (5) Actual payments Underpayment penalty 1st quarter 2nd quarter 3rd quarter 4th quarter [The following information applies to the questions displayed below.] XYZ is a calendar-year corporation that began business on January 1, 2020. For the year, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. Use Exhibit 16-6. XYZ corp. Income statement For current year Revenue from sales Cost of Goods Sold Gross profit Book Income $ 40,000,000 (27,000,000) $ 13,000,000 300,0001 20,0002 (4,000) 3, 0093 50,000 $ 13,369,000 Other income: Income from investment in corporate stock Interest income Capital gains (losses) Gain or loss from disposition of fixed assets Miscellaneous income Gross Income Expenses: Compensation Stock option compensation Advertising Repairs and Maintenance Rent Bad Debt expense Depreciation Warranty expenses Charitable donations Meals Goodwill impairment Organizational expenditures Other expenses Total expenses Income before taxes Provision for income taxes Net Income after taxes 8 (7,500,000) (200,000)5 (1,350,000) (75,000) (22,000) (41,000,6 (1,400,000)? (70,000) (500,000) (18,000) (30,000,10 (44,000,11 (140,000)1 $(11,390,000) $ 1,979,000 (400,000, 13 $ 1,579,000 12 ma taxes. 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) $ 400,000 $ 1,100,000 $ 1,400,000 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.) 2. Determine the quarters for which XYZ is subject to underpayment of estimated tax penalties. (Round "Annualization Factor" for Fourth quarter to 2 decimal places.) Installment (1) Required cumulative (2) Estimated tax (3) Required payment (per payment under payment based on quarter) under prior annualized method current year tax year tax method liability (4) Required cumulative payment (5) Actual payments Underpayment penalty 1st quarter 2nd quarter 3rd quarter 4th quarter
