Solaris Corporation prepared the following estimates for the four quarters of the current year:

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Sales	$	1,475,000		$	1,770,000		$	2,065,000		$	2,360,000
Cost of goods sold		450,000			530,000			600,000			650,000
Administrative costs		420,000			240,000			245,000			255,000
Advertising costs		0			200,000			0			0
Executive bonuses		0			0			0			72,000
Provision for bad debts		0			0			0			86,000
Annual maintenance costs		62,000			0			0			0

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.

1. 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.

2. 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.