E15-10 First Second Third

income year-to-
date $ 340,000.00 $ 1,130,000.00 $ 2,630,000.00
quarterly period
income $ 340,000.00 $ 790,000.00 $ 1,500,000.00
income tax
expense $ (97,778.78) $ (227,191.87) $ (431,376.98)
net income $ 242,221.22 $ 562,808.13 $ 1,068,623.02

Income Tax Expense Computations

1st Quarter $ 97,778.78 $ 97,778.78
2nd Quarter $ 324,970.65 $ 227,191.87 $ 227,191.87
3rd Quarter $ 756,347.63 $ 431,376.98 $ 431,376.98
4th Quarter $ 1,274,000.00 $ 517,652.37 $ 517,652.37
$ 1,274,000.00

P15-8
1. Estimated annual effective tax rate
First $50,000 X 20% $ 10,000.00
Reminder

$110,000 X 34% $ 37,400.00

Less amount subject to dividens received deduction $ (5,440.00)

($20,000 X 80% X 34%)
Total tax for the year $ 41,960.00
Total Income $ 160,000.00

Effective tax rate 26.23%

2. Schedule of Income by Quarter for 2016

First Second Third
income year-to-
date $ 20,000.00 $ 50,000.00 $ 110,000.00
quarterly period
income $ 20,000.00 $ 30,000.00 $ 60,000.00
income tax
expense $ (5,245.00) $ (7,867.50) $ (15,735.00)
net income $ 14,755.00 $ 22,132.50 $ 44,265.00

Income Tax Expense Computations

1st Quarter $ 5,245.00 $ 5,245.00
2nd Quarter $ 13,112.50 $ 7,867.50 $ 7,867.50
3rd Quarter $ 28,847.50 $ 15,735.00 $ 15,735.00
4th Quarter $ 41,960.00 $ 13,112.50 $ 13,112.50
Total Tax Expense $ 41,960.00
Fourth one year

$ 4,430,000.00 $ 4,430,000.00

$ 1,800,000.00 $ 4,430,000.00

$ (517,652.37) $ (1,274,000.00)
$ 1,282,347.63 $ 3,156,000.00 $ 1,274,000.00

Fourth one year

$ 160,000.00 $ 160,000.00

$ 50,000.00 $ 160,000.00

$ (13,112.50) $ (41,960.00)
$ 36,887.50 $ 118,040.00
 2500

10000

20000
62500
1179000
4430000 1274000
3930000 0.28758465