REFERENCE: Ref.08_09 Provo,Inc.has an Estimated Annual Tax Rate of 35 Percent in Percent

question 28

Multiple Choice

REFERENCE: Ref.08_09
Provo,Inc.has an estimated annual tax rate of 35 percent in the first quarter of 2009.Pretax income for the first quarter was $300,000.At the end of the second quarter of 2009,Provo expects the annual tax rate to be 32 percent because of anticipated tax credits.Pretax income for the second quarter was $350,000.Assume no items in either quarter requiring the net-of-tax presentation.
-How much income tax expense is recognized in the second quarter of 2009?

• A)$103,000.
• B)$104,000.
• C)$112,000.
• D)$122,500.
• E)$208,000.

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Definitions:

SUMIF Function

A function in spreadsheet software that sums the values in a range that meet specified criteria.

Criteria

The standards or conditions that are used to judge or make a decision about something.

Range

In computing, it often refers to a selection of cells in spreadsheets or a series of values in programming.

AVERAGE Function

A mathematical function used in spreadsheet software to calculate the mean value of a selected range of cells containing numeric data.