Question

For the current year, LNS corporation reported the following taxable income at the end of its first, second, and third quarters.

Quarter-End	Cumulative Taxable Income
First	$	1,000,000
Second		1,600,000
Third		2,400,000

What are LNS’s minimum first, second, third, and fourth quarter estimated tax payments determined using the annualized income method? (Enter all amounts as positive values. Leave no answer blank. Enter zero if applicable. Round "Annualization Factor" for Fourth quarter to 7 places. Round other intermediate computations and final answers to the nearest whole dollar amount.)

Installment	Taxable Income	Annualization Factor	Annual Est. Taxable Income	Tax on Estimated Taxable Income	Percentage of Tax Required to be Paid		Required Cumulative Payment	Prior Cumulative Payments	Required Estimated Tax Payment
First quarter	$1,000,000selected answer correct	4selected answer correct	$4,000,000	$1,360,000selected answer incorrect	25selected answer correct	%	$340,000	$0selected answer correct	$340,000selected answer incorrect
Second quarter	$1,000,000selected answer correct	4selected answer correct	$4,000,000	$1,360,000selected answer incorrect	50selected answer correct	%	$680,000	$340,000selected answer incorrect	$340,000selected answer incorrect
Third quarter	$1,600,000selected answer correct	2selected answer correct	$3,200,000	$1,088,000selected answer incorrect	75selected answer correct	%	$816,000	$680,000selected answer incorrect	$136,000selected answer incorrect
Fourth quarter	$2,400,000selected answer correct	1.3333333selected answer correct	$3,200,000	$1,088,000selected answer incorrect	100selected answer correct	%	$1,088,000	$816,000selected answer incorrect	$272,000

Answer 1

From 2018, the corporate tax rate should be applied is 21%

Installment	Taxable Income	Annualization Factor	Annual Est. Taxable Income	Tax on Estimated Taxable Income	Percentage of Tax Required to be Paid		Required Cumulative Payment	Prior Cumulative Payments	Required Estimated Tax Payment
First quarter	$1,000,000	4	$4,000,000	$840000	25	%	$210000	$0	$210000
Second quarter	$1,000,000	4	$4,000,000	$840000	50	%	$420000	$210000	$210000
Third quarter	$1,600,000	2	$3,200,000	$672000	75	%	$504000	$420000	$84000
Fourth quarter	$2,400,000	1.3333	$3,200,000	$672000	100	%	$672000	$504000	$168000

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