XYZ made four equal estimated tax payments totaling $400,000 ($100,000 per quarter). For purposes of estimated taxliabilities, assume XYZ was in existence in 2022 and that in 2022 it reported a tax liability of $556,000. During 2023, XYZdetermined its taxable income at the end of each of the first three quarters as follows:Quarter-endFirstSecondThirdFinally, assume that XYZ is not a large corporation for purposes of estimated tax calculations.Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount.Cumulative taxableincome (loss)$ 425,000Comprehensive Problem 05-65 Part e (Algo)Installment$ 1,125,000$ 1,515,000e. Determine the quarters for which XYZ is subject to underpayment of estimated tax penalties.1st quarter2nd quarter3rd quarter4th quarter$(1) Requiredcumulativepayment (perquarter) under prioryear tax method556,000(2) Estimated taxpayment underannualized method(3) Requiredpayment based oncurrent year taxliability(4) Requiredcumulativepayment$$$$(5) ActualpaymentsUnderpaymentpenalty100,000 No200,000 No300,000 Yes400,000 Yes

First Quarter: $425,000Second Quarter: $1,125,000 - $425,000 = $700,000Third Quarter: $1,515,000 -…

XYZ made four equal estimated tax payments totaling $400,000 ($100,000 per quarter). For purposes of estimated tax liabilities, assume XYZ was in existence in 2022 and that in 2022 it reported a tax liability of $556,000. During 2023, XYZ determined its taxable income at the end of each of the first three quarters as follows: Quarter-end First Second Third Cumulative taxable income (loss) $ 425,000 $ 1,125,000 $ 1,515,000 Finally, assume that XYZ is not a large corporation for purposes of estimated tax calculations. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. Comprehensive Problem 05-65 Part e (Algo) e. Determine the quarters for which XYZ is subject to underpayment of estimated tax penalties.

XYZ made four equal estimated tax payments totaling $400,000 ($100,000 per quarter). For purposes of estimated tax liabilities, assume XYZ was in existence in 2022 and that in 2022 it reported a tax liability of $556,000. During 2023, XYZ determined its taxable income at the end of each of the first three quarters as follows: Quarter-end First Second Third Cumulative taxable income (loss) $ 425,000 $ 1,125,000 $ 1,515,000 Finally, assume that XYZ is not a large corporation for purposes of estimated tax calculations. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. Comprehensive Problem 05-65 Part e (Algo) e. Determine the quarters for which XYZ is subject to underpayment of estimated tax penalties.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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