Omnidata Uses the Annualized Income Method to Determine Its Quarterly

question 53

Multiple Choice

Omnidata uses the annualized income method to determine its quarterly federal income tax payments.It had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters) .What is Omnidata's annual estimated taxable income for the tax year as of the end of the third quarter?

• A)$300,000.
• B)$320,000.
• C)$400,000.
• D)$480,000.

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Definitions:

Authoritative Accounting Guidance

Officially recognized principles and standards that govern financial reporting and accounting practices.

ASC

Accounting Standards Codification, the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities in the United States.

FASB

The Financial Accounting Standards Board, an organization responsible for establishing financial accounting and reporting standards in the United States.

Chronological Order

Organizing events in the order that they occurred in time.