1. Interim reporting under FASB ASC Topic 270 guidelines refers to financial reporting:

a On a monthly basis
b On a quarterly basis
c On a regular basis
d For periods less than a year

2. A liquidation of LIFO inventories for interim reporting purposes may create a problem in measuring cost of sales. Accordingly, cost of sales in interim periods should:

a Be determined using the gross profit method
b Include the income effect of the LIFO liquidation
c Include the expected cost of replacing the liquidated LIFO base
d None of the above

3. Bar Company’s effective annual income tax rates for the first two quarters of 2016 are 34 percent and 30 percent for the first and second quarter, respectively. Assume that Bar’s pretax income is $240,000 for the first quarter and $180,000 for the second quarter. Income tax expense for the second quarter is computed as:

a $54,000
b $126,000
c $135,600
d $44,400

4. Assume corporate tax rates of 15 percent on the first $50,000 of taxable income, 25 percent on taxable income between $50,000 and $75,000, 34 percent on taxable income between $75,000 and $100,000, and 39 percent on taxable income between $100,000 and $335,000. If a corporation estimates its pretax income at $20,000 for the first quarter, $25,000 for the second quarter, $30,000 for the third quarter, and $35,000 for the  fourth quarter, its estimated annual effective tax rate is:

a 23.77 percent
b 25 percent
c 24.67 percent
d 34 percent