Noventis Corporation prepared the following estimates for the four quarters of the current year:

Additional Information
€¢ First-quarter administrative costs include the $100,000 annual insurance premium.
€¢ Advertising costs paid in the second quarter relate to television advertisements that will be broadcast throughout the entire year.
€¢ No special items affect income during the year.
€¢ Noventis estimates an effective income tax rate for the year of 40 percent.
a. Assuming that actual results do not vary from the estimates provided, determine the amount of income to be reported each quarter of the current year.
b. Assume that actual results do not vary from the estimates provided except for that in the third quarter; the estimated annual effective income tax rate is revised downward to 38 percent.
Determine the amount of income to be reported each quarter of the currentyear.

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First Quarter Second Quarter Third Quarter Fourth Quarter Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs $1,000,000 $1,200,000 $1,400,000 $1,600,000 600,000 170,000 400,000 250,000 480,000 155,000 100,000 550,000 160,000 80,000 52,000 60,000