Solaris Corporation prepared the following estimates for the four quarters of the current year: First Quarter Second Quarter Third Quarter Fourth Quarter Sales $ 1,100,000 $ 1,320,000 $ 1,540,000 $ 1,760,000 Cost of goods sold 410,000 490,000 Administrative costs Advertising costs Executive bonuses Provision for bad debts 270,000 165,000 560,000 170,000 610,000 180,000 140,000 60,000 56,000 Annual maintenance costs 64,000 Additional Information First-quarter administrative costs include the $120,000 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. The company estimates an effective income tax rate for the year of 25 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 22 percent. Determine the amount of net income to be reported each quarter of the current year. Period Net Income a. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter b. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter