Toledo Imports,a calendar-year corporation,had the following income before tax expense and estimated effective annual income tax rates for the first three quarters in 2008: Toledo's income tax expense in its interim income statement for the nine months ended September 30 and for the third quarter,respectively,are:
A)$250,800 and $103,200.
B)$252,000 and $108,000.
C)$252,000 and $103,200.
D)$250,800 and $108,000.

Question

Quizplus · Accepted Answer

Toledo's income tax expense for the nine months ended September 30 is calculated using the estimated effective annual tax rate applied to the income before tax for the nine months. For the third quarter, the tax expense is the difference between the tax expense for the nine months and the tax expense for the first six months.

Toledo Imports,a Calendar-Year Corporation,had the Following Income Before Tax Expense