Abitz Corporation Has the Following Pretax Operating Income in Its

Multiple Choice

Abitz Corporation has the following pretax operating income in its first three quarters of 2016.The effective tax rate for each quarter is provided.Determine the third quarter income tax or benefit. ?

$$\begin{array} { l r r } & \text { Current } & \text { Effective } \\\text { Quarter } & \text { Period } & \text { Tax Rate } \\ \text { First } & \$ 40,000 & 25 \% \\ \text { Second }& ( 25,000 ) & 25 \% \\\text { Third }& 50,000 & 30 \%\end{array}$$

A) $3,750
B) $15,000
C) $15,750
D) $20,000