On October 1, 2005, Anaconda Company Estimated an Effective Income

Essay

On October 1, 2005, Anaconda Company estimated an effective income tax rate of 42% for the fiscal year ending September 30, 2006. On January 2, 2006, Anaconda changed the estimate to 38%. Pre-tax financial income for Anaconda for the first two quarters of the fiscal year ending September 30, 2006, was as follows:
Prepare journal entries for income taxes expense for Anaconda Company on December 31, 2005, and March 31, 2006. Show supporting computations in explanations for the journal entries.