The income tax expense applicable to the second quarter's income statement is determined by:
A)dividing the estimated annual income tax expense by four and allocating the amount to the second quarter.
B)multiplying the effective income tax rate times the income before tax for the second quarter.
C)subtracting the income tax expense applicable to the first quarter from the income tax expense applicable to the first two quarters.
D)subtracting the income tax liability applicable to the first quarter from the income tax liability applicable to the first two quarters.

Question

Quizplus · Accepted Answer

The income tax expense for the second quarter is determined by subtracting the income tax expense of the first quarter from the cumulative income tax expense for the first two quarters. This approach ensures that the tax expense reflects the actual income earned in the second quarter.

The Income Tax Expense Applicable to the Second Quarter's Income