In the first quarter of 2010, Hill Caterpillar Sales reported $900 of income before taxes.The estimated effective tax rate was 20%.In the second quarter, the company reported $800 of income before taxes, and the estimated effective tax rate increased to 25%.
Required:
Compute the second quarter tax expense for Hill Caterpillar Sales.

Question

Quizplus · Accepted Answer

The Answer of In the first quarter of 2010, Hill Caterpillar Sales reported $900 of income before taxes.The estimated effective tax rate was 20%.In the second quarter, the company reported $800 of income before taxes, and the estimated effective tax rate increased to 25%.
Required:
Compute the second quarter tax expense for Hill Caterpillar Sales.

In the First Quarter of 2010, Hill Caterpillar Sales Reported