Consider the following:
?
?
Case

A \quad

Income (loss) for quarters 1 through 4 is

( \$ 50,000 ) , \$ 30,000 , \$ 40,000

, and

\$ 40,000

, respectively. Future projected income for the year is uncertain at the end of quarters 1 and 2. Annual income at the end of quarter 3 is estimated to be

\$ 20,000

. No carryback benefit exists, and any future annual benefit is uncertain.

Case B

\quad

Assume the same facts as in Case A. However, at the end of quarters 1 through 3 , annual income is estimated to be

\$ 40,000

.

Case C

\quad

Quarterly income (loss) levels were

\$ 15,000 , ( \$ 35,000 )

, (

\$ 75,000 )

, and

\$ 25,000

. A yearly operating loss of

\$ 70,000

was anticipated throughout the year. Frior years' income of

\$ 28,000

is avail able for carryback. The same tax rates were relevant to the carryback period Required:
?
For cases A through C, complete the schedule that follows: Assume that the statutory tax rate is 15% on the first $50,000 of income, 25% on the next $25,000, and 30% on income in excess of $75,000.
?
$Consider the following: ? ? Case A \quad Income (loss) for quarters 1 through 4 is ( \$ 50,000 ) , \$ 30,000 , \$ 40,000 , and \$ 40,000 , respectively. Future projected income for the year is uncertain at the end of quarters 1 and 2. Annual income at the end of quarter 3 is estimated to be \$ 20,000 . No carryback benefit exists, and any future annual benefit is uncertain. Case B \quad Assume the same facts as in Case A. However, at the end of quarters 1 through 3 , annual income is estimated to be \$ 40,000 . Case C \quad Quarterly income (loss) levels were \$ 15,000 , ( \$ 35,000 ) , ( \$ 75,000 ) , and \$ 25,000 . A yearly operating loss of \$ 70,000 was anticipated throughout the year. Frior years' income of \$ 28,000 is avail able for carryback. The same tax rates were relevant to the carryback period Required: ? For cases A through C, complete the schedule that follows: Assume that the statutory tax rate is 15% on the first $50,000 of income, 25% on the next $25,000, and 30% on income in excess of $75,000. ?$

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