Question
Problem 26-31 (Algorithmic) (LO. 6) Trudy's AGI last year was $382,000. Her Federal income tax came to $114,600, which she paid through a combination of
Problem 26-31 (Algorithmic) (LO. 6)
Trudy's AGI last year was $382,000. Her Federal income tax came to $114,600, which she paid through a combination of withholding and estimated payments. This year, her AGI will be $573,000, with a projected tax liability of $85,950, all to be paid through estimates.
Note: Ignore the annualized income method.
Do not round any division. Round each quarterly payment to the nearest whole dollar value.
a. Trudy's total estimated tax payments are $ __________ under the current-year method and $_____________under the prior-year method.
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b. Assume instead that Trudy's AGI last year was $130,000 and resulted in a Federal income tax of $26,000. Her total estimated tax payments are $ _____________under the current-year method and $______________under the prior-year method.
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