P 8-39 A Saved Help Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate comple 1 Noventis Corporation prepared the following estimates for the four quarters of the current year: 10 points Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs First Quarter $ 1,300,000 436,000 490,000 0 0 0 76,000 Second Quarter $ 1,560,000 516,000 275,000 120,000 0 0 0 Third Quarter $ 1,820,000 586,000 280,000 0 0 0 0 Fourth Quarter $ 2,080,000 636,000 290,000 0 100,000 58,000 0 Additional Information First-quarter administrative costs include the $170,000 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 net 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 net income to be reported each quarter of the current year. a. 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. 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 net income to be reported each quarter of the current year. X Answer is complete but not entirely correct. Net Income a. $ 237,300 417,900 X 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 528,900 554,100 b. $ 237,300 417,900 X 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 546,530 X 572,570 X