Solaris Corporation prepared the following estimates for the four quarters of the current year: First Quarter $ 1,325,000 438,000 480,000 3 Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs Second Quarter $ 1,590,000 518,000 270,000 200,000 Third Quarter $ 1,855,000 588,000 275,000 Fourth Quarter $ 2,120,000 638,000 285,000 @ 96,000 56,000 0 e 0 74,000 C Additional Information First-quarter administrative costs include the $160,000 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. > Answer is complete but not entirely correct. Period a. 1st Quarter Net Income $ 249,750 X 451,500 X 2nd Quarter 3rd Quarter 4th Quarter 744,000 X 783,750 b 1st Quarter 2nd Quarter $ 249,750 451,500 X 773,760 783.750 X 3rd Quarter 4th Quarter