Rapidpro Incorporated Had More Than $1,000,000 of Taxable Income Two

question 75

Multiple Choice

Rapidpro Incorporated had more than $1,000,000 of taxable income two years prior to the current year. It would like to use its prior-year tax liability (which was very low but above zero) to determine its quarterly estimated payments this year. Which of the following statements is true?

• A)Rapidpro may use the prior-year tax liability to determine its first and second quarter estimated tax payments only since it is a large corporation.
• B)To avoid penalty, the second quarter estimated payment must be large enough to cover 50 percent of its estimated annual tax liability annualized from its first quarter estimated taxable income (assume it does not rely on its current-year actual tax liability to determine its estimated tax payment).
• C)To avoid penalty, the third quarter estimated payment must be large enough to cover 50 percent of its estimated annual tax liability annualized from its third quarter estimated taxable income (assume it does not rely on its current-year actual tax liability to determine its estimated tax payment).
• D)None of the choices are correct.

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Definitions:

Oxygen Saturation

A measure of the amount of oxygen-bound to hemoglobin in the blood, reflecting how well oxygen is being distributed throughout the body.

Apical Pulse

The pulse taken with a stethoscope at the apex of the heart, providing information about the heart's rate and rhythm.

Diaphragm

A large, dome-shaped muscle located at the base of the lungs and thoracic cavity that plays a crucial role in the respiratory process by assisting in inhalation and exhalation.

Stethoscope

A medical instrument used for listening to sounds produced within the body, such as the heart and lungs.