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28 Sep 2019
Kapitol Services Corp estimates that its 2017 taxable income will be $500,000. Thus it is subject to a flat 34% income tax rate and incurs a $170,000 liability. For each of the following independent situations, compute Kapitolâs 2017 minimu quarterly estimated tax payments that will avoid an underpayment penalty.
a. For 2016, taxable income was ($200,000). Kapitol carried back all of this loss to prior years and exhausted the entire NOL in creating a $0 2016 liability.
b. For 2016, taxable income was $450,000, and tax liability was $153,000.
c. For 2015, taxable income was $2 million, and tax liability was $680,000. For 2016, taxable income was $400,000 and tax liability was $136,000.
Kapitol Services Corp estimates that its 2017 taxable income will be $500,000. Thus it is subject to a flat 34% income tax rate and incurs a $170,000 liability. For each of the following independent situations, compute Kapitolâs 2017 minimu quarterly estimated tax payments that will avoid an underpayment penalty.
a. For 2016, taxable income was ($200,000). Kapitol carried back all of this loss to prior years and exhausted the entire NOL in creating a $0 2016 liability.
b. For 2016, taxable income was $450,000, and tax liability was $153,000.
c. For 2015, taxable income was $2 million, and tax liability was $680,000. For 2016, taxable income was $400,000 and tax liability was $136,000.
Trinidad TremblayLv2
28 Sep 2019