In Its Interim Report for the Three Months Ended January

Multiple Choice

In its interim report for the three months ended January 31, 2006, the first quarter of its fiscal year ending October 31, 2006, Wister Company had income taxes expense of $52,800 ($100,000 x 0.528) . On April 30, 2006, Wister estimated that its effective income tax rate for the year ending October 31, 2006, would be 50.9%. If Wister's pre-tax financial income for the three months ended April 30, 2006, was $110,000, Wister's income taxes expense for the three months ended April 30, 2006, is:

A) $55,990 ($110,000 x 0.509)
B) $54,090 [($210,000 x 0.509) - $52,800]
C) $58,080 ($110,000 x 0.528)
D) $106,890 ($210,000 x 0.509)