Case study of baker company


Baker Company is trying to determine how often it needs to deposit payroll taxes for calendar year 2013. The company made the following quarterly payroll tax deposits during the last two years:

Quarter beginning January 1, 2011 $ 10,000

Quarter beginning April 1, 2011 10,000

Quarter beginning July 1, 2011 11,000

Quarter beginning October 1, 2011 12,000

Quarter beginning January 1, 2012 12,000

Quarter beginning April 1, 2012 12,000

Quarter beginning July 1, 2012 11,000

Quarter beginning October 1, 2012 12,000

a. What is the amount from the lookback period?

b. In 2013 how often must Baker Company make payroll deposits?

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Accounting Basics: Case study of baker company
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