The Estimated Taxable Income for Shebill Corporation on January 1,2014,was

question 31

Multiple Choice

The estimated taxable income for Shebill Corporation on January 1,2014,was $80,000,$100,000,$100,000 and $120,000,respectively,for each of the four quarters of 2014.Shebill's estimated annual effective tax rate was 30%.During the second quarter of 2014,the estimated annual effective tax rate was increased to 34%.Given only this information,Shebill's second quarter income tax expense was

• A)$30,000.
• B)$34,000.
• C)$37,200.
• D)$61,200.

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Definitions:

Credit Sales

Sales made on credit, which allow the buyer to pay the seller at a later date, typically recorded as accounts receivable.

Cash Expenditures

The total amount of money a company spends on acquiring physical goods, services, or assets in a given period.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services that have been delivered but not yet paid for.

Cost of Goods Sold

An expense representing the total cost of materials and labor directly associated with the production of goods sold by a business.