Required information Comprehensive Problem 13-83 (LO 13-1, LO 13-2, LO 13-3, LO 13-4) (Algo) [The following information applies to the questions displayed below.] XYZ is a calendar-year corporation that began business on January 1, 2022. 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 13-6. XYZ corporation Income statement For current year Revenue from sales Book Income Cost of Goods Sold Gross profit Other income: $ 41,400,000 (27,945,000) $ 13,455,000 Income from investment in corporate stock Interest income Capital gains (losses) Gain or loss from disposition of fixed assets Miscellaneous income Gross Income Compensation Stock option compensation Advertising Repairs and Maintenance Rent Bad Debt expense Depreciation Warranty expenses Charitable donations Meals (all from restaurants) Goodwill impairment Organizational expenditures Other expenses Total expenses Income before taxes Provision for income taxes Net Income after taxes Expenses: 300,0001 25,6002 (4,000) 3,000 50,000 $ 13,829,600 (7,514,000) 4 (214,000)5 (1,364,000) (82,000) (29,000) (48,000) 6 (1,575,000)7 (84,000)8 (500,000)9 (19,400) (33,500) 10 (38,000) 11 (154,000) 12 $ (11,654,900) $ 2,174,700 (400,000) 13 $ 1,774,700 Determine the quarters for which XYZ is subject to underpayment of estimated tax penalties. Note: Round "Annualization Factor" for Fourth quarter to 2 decimal places. Installment 1st quarter 2nd quarter 3rd quarter 4th quarter (1) Required cumulative payment (per (2) Estimated tax payment under (3) Required payment based on current year tax liability (4) Required cumulative (5) Actual payments Underpayment penalty quarter) under prior annualized method year tax method payment < Required B Required E > EXHIBIT 13-6 Net Operating Loss Carryback and Carryover Summary* Tax Year NOL Originated Beginning before 2018 Carrybacks Carrybacks Back two years.** Can offset 100% of taxable income before the Forward 20 years. Can offset 100% of taxable income before the NOL deduction in carryback years. NOL deduction. Beginning after 2017 and before 2021 Back five years.** Can offset up to 100% of taxable income before the NOL deduction in carryback years. Beginning after 2020 Not allowed. Carried forward indefinitely. Can offset up to 100% of taxable income before the NOL deduction in tax years beginning before 2021. In tax years beginning after 2020, can offset up to 80 percent of taxable income after deducting NOL carryovers from NOLs originating in tax years beginning before 2018. Carried forward indefinitely. Can offset up to 80 percent of taxable income remaining after deducting NOL carryovers from NOLs originating in tax years beginning before 2018. *In certain situations, when a corporation with a NOL experiences an "ownership change," the NOL deduction may be limited beyond the restrictions described in this exhibit. (see 382). A discussion of these rules are beyond the scope of this text. *A corporation can elect to forgo the NOL carryback and simply carry the NOL forward to future years. Also, if a corporation carries back a NOL, it must carry it back to the earliest year first (i.e., two years prior or five years prior, depending on the year the NOL originated).