Tem Technology has a first-quarter operating loss of $100,000 and expects the following income for the other three quarters: Second quarter Third quarter Fourth quarter $ 80,000 160,000 400,000 Tem estimated the effective annual tax rate at 40 percent at the end of the first quarter and changed it to 45 percent at the end of the third quarter. The company has a normal seasonal pattern of losses in the first quarter and income in the other quarters. Required: Prepare a schedule computing the tax obligations or benefits that should be shown on the interim statements. (Negative amounts should be Indicated by a minus sign.) Income (Losses) Before Taxes Period Period Year-to-Date Estimated Effective Annual Tax Rate Year-to-Date Tax (Benefit) Less Previously provided Reported In Period M
Tem Technology has a first-quarter operating loss of $100,000 and expects the following income for the other three quarters: Second quarter Third quarter Fourth quarter $ 80,000 160,000 400,000 Tem estimated the effective annual tax rate at 40 percent at the end of the first quarter and changed it to 45 percent at the end of the third quarter. The company has a normal seasonal pattern of losses in the first quarter and income in the other quarters. Required: Prepare a schedule computing the tax obligations or benefits that should be shown on the interim statements. (Negative amounts should be Indicated by a minus sign.) Income (Losses) Before Taxes Period Period Year-to-Date Estimated Effective Annual Tax Rate Year-to-Date Tax (Benefit) Less Previously provided Reported In Period M
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
im.3
Transcribed Image Text:Tem Technology has a first-quarter operating loss of $100,000 and expects the following income for the other three quarters:
Second quarter
Third quarter
Fourth quarter
Tem estimated the effective annual tax rate at 40 percent at the end of the first quarter and changed it to 45 percent at the end of the
third quarter. The company has a normal seasonal pattern of losses in the first quarter and income in the other quarters.
Required:
Prepare a schedule computing the tax obligations or benefits that should be shown on the interim statements. (Negative amounts
should be Indicated by a minus sign.)
Period Period
123
Income (Losses) Before
Taxes
4
Total
$ 80,000
160,000
400,000
GE
Estimated
Effective
Annual
Year-to-Date Tax Rate
Year-to-Date
Tax (Benefit)
Less
Previously
provided
Reported In
Period
$
0
گے
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