For each of the following independent cases compute kolds


Question - Kold Services Corporation estimates that its 2012 taxable income will be $500000. Thus, it is subject to a flat 34% income tax rate and incurs a $170000 liability. For each of the following independent cases, compute kold's minimum quarterly estimated tax payments that will avoid an underpayment penalty.

a. For 2011, taxable income was ($200000). Kold carried back all of this loss to prior yeas and exhausted the entire net operating loss in creating a zero 2011 liability.

b. For 2011, taxable income was $450000, and tax liability was $153000.

c. For 2010, taxable income was $2 million, and tax liability was $680000. For 2011, taxable income was $400000, and tax liability was $136000.

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Accounting Basics: For each of the following independent cases compute kolds
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