Interim financial statements; income tax expense
Joplin Laminating Corporation reported income before income taxes during the first three quarters, and management's estimates of the annual effective tax rate at the end of each quarter as shown below:
| |
Quarter |
| |
First |
Second
|
Third |
|
Income before income taxes
|
$50,000
|
$40,000
|
$100,000
|
|
Estimated annual effective tax rate
|
34%
|
30%
|
36%
|
Required:
Determine the income tax expense to be reported in the income statement in each of the three quarterly reports.