Question

Omnidata uses the annualized income method to determine its quarterly federal income tax payments. It had $119,000, $66,000, and $106,250 of taxable income for the first, second, and third quarters, respectively ($291,250 in total through the first three quarters). What is Omnidata's annual estimated taxable income for the tax year as of the end of the third quarter?

Answer 1

Answer:

annual estimated taxable income = $370000

Explanation:

given data

taxable income first quarters = $119,000

taxable income second quarters = $66,000

taxable income third quarters = $106,250

total first three quarters = $291,250

to find out

annual estimated taxable income

solution

we get here annual taxable income so first we get here third quarter estimated payment

so for that we need annualize cumulative taxable income half year that is taxable income of 1st and 2nd quarters

so taxable income of 1st and 2nd quarters = $119,000  and  $66,000  

so here annual estimated taxable income will be

annual estimated taxable income = 2 × ( taxable income first quarters + taxable income second quarters ) .........1

annual estimated taxable income =  2 ×  ( $119000 + $66000 )

annual estimated taxable income = $370000