Omnidata Uses the Annualized Income Method to Determine Its Quarterly

question 13

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 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:

Sales Returns

Goods returned by buyers after sale due to defects, dissatisfaction, or other reasons, which are deducted from total sales revenue.

Unearned Revenue

Money received by an entity for a service or product yet to be provided or delivered.

Periodic Inventory System

An inventory accounting system where updates are made to inventory levels and cost of goods sold at specific periods.

Worksheet

A document used by accountants to bring together all the data for financial statements, making adjustments and closing entries.