William Corporation,which has a fiscal year ending January 31,had the following pretax accounting income and estimated effective annual income tax rates for the first three quarters of the year ended January 31,20X8:
William's income tax expenses in its interim income statement for the third quarter are:
A)$36,000.
B)$73,500.
C)$46,500.
D)$120,000.

Question

Quizplus · Accepted Answer

To calculate the income tax expense for the third quarter, we need to determine the cumulative income tax expense up to the third quarter and then subtract the cumulative income tax expense up to the second quarter. The effective tax rate for the third quarter is applied to the cumulative pretax income up to that quarter.

William Corporation,which Has a Fiscal Year Ending January 31,had the Following