Solaris Corporation prepared the following estimates for the four quarters of the current year: First Quarter $ 1,400,000 444,000 450,000 Second Quarter $ 1,680,000 524,000 255,000 140,000 0 Third Quarter $ 1,960,000 594,000 260,000 Fourth Quarter $ 2,240,000 644,000 270,000 Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs 84,000 50,000 68,000 0 Additional Information First-quarter administrative costs include the $190,000 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. a Answer is complete but not entirely correct. Net Period Income 1st Quarter $ 447,375 2nd Quarter 601,125 3rd Quarter 754,875 4th Quarter 819,375 b. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 447,375 601,125 785,070 X 852, 150