I need help with the following problem, as I keep getting the incorrect answers.

Below are the incorrect answers:

Problem:

Solaris 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.
• The company estimates an effective income tax rate for the year of 25 percent.

Item1

6points

Return to question

Item 1

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

Accounts	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Sales	$ 1,000,000	$ 1,200,000	$ 1,400,000	$ 1,600,000
Cost of goods sold	400,000	480,000	550,000	600,000
Administrative costs	250,000	155,000	160,000	170,000
Advertising costs	0	100,000	0	0
Executive bonuses	0	0	0	80,000
Provision for bad debts	0	0	0	52,000
Annual maintenance costs	60,000	0	0	0

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.
• The company estimates an effective income tax rate for the year of 25 percent.

Required:

Assuming that actual results do not vary from the estimates provided, determine the amount of net income to be reported each quarter of the current year.

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 22 percent. Determine the amount of net income to be reported each quarter of the current year.

Answer is complete but not entirely correct. \begin{tabular}{lrrrr} \multicolumn{1}{c}{ Accounts } & First Quarter & Second Quarter & Third Quarter & Fourth Quarter \\ Sales & $1,000,000 & $1,200,000 & $1,400,000 & $1,600,000 \\ Cost of goods sold & 400,000 & 480,000 & 550,000 & 600,000 \\ Administrative costs & 250,000 & 155,000 & 160,000 & 170,000 \\ Advertising costs & 0 & 100,000 & 0 & 0 \\ Executive bonuses & 0 & 0 & 0 & 80,000 \\ Provision for bad debts & 0 & 0 & 0 & 52,000 \\ Annual maintenance costs & 60,000 & 0 & 0 & 0 \end{tabular}