Question

deer co., a calendar-year corporation, reported income before income tax expense of $10,000 and income tax expense of $1,500 in its interim income statement for the first quarter of the year. deer co. had income before income tax expense of $20,000 for the second quarter and an estimated effective annual rate of 25%. what amount should bard report as income tax expense in its interim income statement for the second quarter?

Answer 1

$6,000 amount should bard report as income tax expense in its interim income statement for the second quarter.

The required details about income tax is mentioned in below paragraph.

An income tax is a tax imposed on people or entities in recognize of the earnings or income earned through them. Income tax normally is computed because the fabricated from a tax fee instances the taxable earnings. Taxation prices might also additionally range through kind or traits of the taxpayer and the form of earnings.

In order to calculate earnings tax cost on an intervening time statement, the best technique is to multiply yr up to now earnings through the powerful tax fee and subtract from that the income tax cost recorded withinside the preceding sector. The general earnings for each quarters is $30,000 and the powerful tax fee expected as of the second one sector is 25%. Total tax cost is then expected as $7,500 for each quarters, and with $1,500 already booked withinside the first sector, on the way to leave $6,000 for the second one sector.

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