Quadrox estimated its annual effective income tax rate to be 45% at the end of its first quarterly interim period for 2006. It had pretax income of $400,000 for its first quarterly interim period for 2006. At the end of the second quarter of 2006, the company estimated its annual effective income tax rate to be 40%. The company had pretax income of $300,000 for its second quarterly interim period of 2006.
Required:
Compute the amount of income tax expense to be reported for the second quarterly interim period and for the year to date.

Question

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The Answer of Quadrox estimated its annual effective income tax rate to be 45% at the end of its first quarterly interim period for 2006. It had pretax income of $400,000 for its first quarterly interim period for 2006. At the end of the second quarter of 2006, the company estimated its annual effective income tax rate to be 40%. The company had pretax income of $300,000 for its second quarterly interim period of 2006.
Required:
Compute the amount of income tax expense to be reported for the second quarterly interim period and for the year to date.

Quadrox Estimated Its Annual Effective Income Tax Rate to Be