Joplin Laminating Corporation reported income before income taxes during the first three quarters and management's estimates of the annual effective tax rate at the end of each quarter as shown below:
| First Quarter | Second Quarter | Third Quarter |
|
Income before
Taxes
|
$54,000 |
$44,000 |
$104,000 |
|
Estimated annual effective
tax rate
|
34% |
30% |
36% |
| Required: |
|
Determine the income tax expense to be reported in the income statement in each of the three quarterly reports.
|
First Quarter |
Second Quarter |
Third Quarter |
|
Cumulative income before
Taxes
|
$54,000 |
$98,000 |
$202,000 |
| Estimated Annual Effective Tax Rate |
34% |
30% |
36% |
|
18,360 |
29,400 |
72,700 |
| Less: income tax reported earlier |
|
|
|
| Tax Expenses to be Reported |
|
|
|
|