In the current year, Auto Rent Corporation reported the following taxable income at the end of its first, second, and third quarters: $$\begin{array} { | l | c | }
\hline { \text { Quarter } } & \begin{array} { c }
\text { Cumulative } \
\text { Taxable Income }
\end{array} \
\hline \text { First } & \$ 1,500,000 \
\hline \text { Second } & \$ 2,800,000 \
\hline \text { Third } & \$ 3,600,000 \
\hline
\end{array}$$ What amount of estimated tax payments would Auto Rent pay each quarter in order to avoid estimated tax penalties under the annualized income method of computing estimated tax payments?

Question

In the current year, Auto Rent Corporation reported the following taxable income at the end of its first, second, and third quarters: $$\begin{array} { | l | c | } 
\hline { \text { Quarter } } & \begin{array} { c } 
\text { Cumulative } \
\text { Taxable Income }
\end{array} \
\hline \text { First } & \$ 1,500,000 \
\hline \text { Second } & \$ 2,800,000 \
\hline \text { Third } & \$ 3,600,000 \
\hline
\end{array}$$ What amount of estimated tax payments would Auto Rent pay each quarter in order to avoid estimated tax penalties under the annualized income method of computing estimated tax payments?

Quizplus · Accepted Answer

The Answer of In the current year, Auto Rent Corporation reported the following taxable income at the end of its first, second, and third quarters: $$\begin{array} { | l | c | } 
\hline { \text { Quarter } } & \begin{array} { c } 
\text { Cumulative } \
\text { Taxable Income }
\end{array} \
\hline \text { First } & \$ 1,500,000 \
\hline \text { Second } & \$ 2,800,000 \
\hline \text { Third } & \$ 3,600,000 \
\hline
\end{array}$$ What amount of estimated tax payments would Auto Rent pay each quarter in order to avoid estimated tax penalties under the annualized income method of computing estimated tax payments?

In the Current Year, Auto Rent Corporation Reported the Following