Last year, Cougar Corp (CC) reported a net operating loss of $25,000 In the current year, CC expected its current year tax liability to be $260,000 so it made four equal estimated tax payments of $65,000 each Cougar closed its books at the end of each quarter The following schedule reports CCs taxable income at the end of each quarter Quarter End Cumulative Taxable Income First $ 300,000 Second 700,000 Third 1,000,000 Fourth 1,500,000 CCs current year tax liability on $1,500,000 of taxable income is $315,000 Problem 16 55 Part b b Which quarters does it owe the penalty (You may select more than one answer Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer Any boxes left with a question mark will be automatically graded as incorrect )

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Question: Last year, Cougar Corp. (CC) reported a net operating loss of $25,000. In the current year, CC expected its current-year tax liability to be $260,000

Last year, Cougar Corp. (CC) reported a net operating loss of $25,000. In the current year, CC expected its current-year tax liability to be $260,000 so it made four equal estimated tax payments of $65,000 each. Cougar closed its books at the end of each quarter. The following schedule reports CCs taxable income at the end of each quarter.

Quarter-End	Cumulative Taxable Income
First	$	300,000
Second		700,000
Third		1,000,000
Fourth		1,500,000

CCs current-year tax liability on $1,500,000 of taxable income is $315,000.

Problem 16-55 Part b

b. Which quarters does it owe the penalty? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

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