Multiple Choice
Provo, Inc. has an estimated annual tax rate of 35% in the first quarter of 2021. Pretax income for the first quarter was $300,000. At the end of the second quarter of 2021, Provo expects the annual tax rate to be 32% because of anticipated tax credits. Pretax income for the second quarter was $350,000. Assume no items in either quarter requiring the net-of-tax presentation.How much income tax expense is recognized in the first quarter of 2021?
A) $0.
B) $26,250.
C) $96,000.
D) $105,000.
E) $112,000.
Correct Answer:
Verified
Correct Answer:
Verified
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