XYZ made four equal estimated tax payments totaling $400,000 ($100,000 per quarter). For purposes of estimated...

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XYZ made four equal estimated tax payments totaling $400,000 ($100,000 per quarter). For purposes of estimated tax liabilities, assume XYZ was in existence in 2022 and that in 2022 it reported a tax liability of $556,000. During 2023, XYZ determined its taxable income at the end of each of the first three quarters as follows: Quarter-end Cumulative taxable income (loss) $ 425,000 $ 1,125,000 First Second Third $ 1,515,000 Finally, assume that XYZ is not a large corporation for purposes of estimated tax calculations. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. Comprehensive Problem 05-65 Part e (Algo) e. Determine the quarters for which XYZ is subject to underpayment of estimated tax penalties. Installment 1st quarter (1) Required cumulative payment (per quarter) under prior year tax method (2) Estimated tax payment under annualized method 2nd quarter 3rd quarter 4th quarter $ 556,000 (3) Required payment based on current year tax liability (4) Required cumulative (5) Actual payments payment Underpayment penalty $ 100,000 No $ 200,000 No $ 300,000 Yes $ 400,000 Yes XYZ made four equal estimated tax payments totaling $400,000 ($100,000 per quarter). For purposes of estimated tax liabilities, assume XYZ was in existence in 2022 and that in 2022 it reported a tax liability of $556,000. During 2023, XYZ determined its taxable income at the end of each of the first three quarters as follows: Quarter-end Cumulative taxable income (loss) $ 425,000 $ 1,125,000 First Second Third $ 1,515,000 Finally, assume that XYZ is not a large corporation for purposes of estimated tax calculations. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. Comprehensive Problem 05-65 Part e (Algo) e. Determine the quarters for which XYZ is subject to underpayment of estimated tax penalties. Installment 1st quarter (1) Required cumulative payment (per quarter) under prior year tax method (2) Estimated tax payment under annualized method 2nd quarter 3rd quarter 4th quarter $ 556,000 (3) Required payment based on current year tax liability (4) Required cumulative (5) Actual payments payment Underpayment penalty $ 100,000 No $ 200,000 No $ 300,000 Yes $ 400,000 Yes

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