Question

Provo, Inc. has an estimated annual tax rate of 35% in the first quarter of 2021. Pretax income for the first quarter was $300,000. At the end of the second quarter of 2021, Provo expects the annual tax rate to be 32% because of anticipated tax credits. Pretax income for the second quarter was $350,000. Assume no items in either quarter requiring the net-of-tax presentation.

Required:
How much income tax expense is recognized in the secound quarter of 2021?

Answer 1

Answer:

$105,000

Explanation:

Calculation for How much income tax expense is recognized in the secound quarter of 2021

Secound quarter income tax expense=$300,000 × .35

Secound quarter income tax expense= $105,000

Therefore How much income tax expense is recognized in the secound quarter of 2021 is $105,000