Roberts Corporation began operations in 2009 and finally began to report pretax profits in 2010. However, a major economic downturn in 2011 has negatively impacted the company€™s operations.
Required
For each of the following quarters of 2011, determine the tax expense or benefit traceable to that quarter. Assume that the statutory tax rates for years 2009 through 2011 are 25%, 30%, and 35%, respectively.

Assume that all current-year (2011) taxable losses and tax credits may be carried back against the prior two years to whatever extent possible. No tax credits were available in years 2009 and 2010.

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Quarter 1 Quarter 2 Quarter 3 Pretax income (loss) for the quarter . . _ . . Projected income (loss) for the balance of the year... Projected nondeductible expenses for the year.. Projected nontaxable income for the year .. . .. . . Projected tax credits for the year. . . . . . . . .. $(150,000 $120,000 97,000 33,000 20,000 7,000 8,000 195,000 (75,000)(50,000) 22,000 15,000 5,000 6,000 195,000 (75,000) 75,000)(75,000) 6,000 250,000