McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 11

Last year, Cougar Corp. (CC) reported a net operating loss of $25,000. In the current year, CC expected its current year tax liability to be $440,000 so it made four equal estimated tax payments of $110,000 each. Cougar closed its books at the end of each quarter. The following schedule reports CC's taxable income at the end of each quarter:
CC's current year tax liability on $1,470,588 of taxable income is $480,000. Does CC owe underpayment penalties on its estimated tax payments If so, for which quarters does it owe the penalty