Robin Corporation, a Calendar Year C Corporation, Had Taxable Income

question 69

Multiple Choice

Robin Corporation, a calendar year C corporation, had taxable income of $1.9 million, $1.2 million, and $900,000 for 2013, 2014, and 2015, respectively. Robin has taxable income of $1.5 million for 2016. The minimum 2016 estimated tax installment payments for Robin are:

• A)April 15, 2016, $76,500; June 15, 2016, $76,500; September 15, 2016, $76,500; December 15, 2016, $76,500.
• B)April 15, 2016, $110,500; June 15, 2016, $127,500; September 15, 2016, $127,500; December 15, 2016, $127,500.
• C)April 15, 2016, $127,500; June 15, 2016, $127,500; September 15, 2016, $127,500; December 15, 2016, $127,500.
• D)April 15, 2016, $76,500; June 15, 2016, $178,500; September 15, 2016, $127,500; December 15, 2016, $127,500.
• E)None of the above.

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Definitions:

Spread

Compensation to the underwriter, determined by the difference between the underwriter’s buying price and offering price. Also, the gap between the interest rate a bank pays on deposits and the rate it charges on loans.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percent rate.

Bank Deposits

Funds that are placed into banking institutions for safekeeping, which can include savings accounts, checking accounts, and certificates of deposit.

Loans

Money lent to individuals or entities with the expectation of repayment within a specific timeframe, usually with interest.