P2) Nettle Corporation is preparing its first quarterly interim report. It is subject to a corporate income tax rate of 20% on the first $50,000 of taxable income and 35% on taxable income above $50,000. Its estimated pretax accounting income for 2014, by quarter, is: 1st Quarter $75,000 2nd Quarter $165,000 3rd Quarter $143,000 4th Quarter $120,000 2014 Total $503,000 Est. Income Nettle expects to earn and receive operating income for the year and does not contemplate any changes in accounting procedures or principles that would affect its pretax accounting income. Required: 1. Determine Nettle's estimated effective tax rate for 2014. 2. Prepare a schedule to show Nettle's estimated net income for each quarter of 2014. Answer: P2) Nettle Corporation is preparing its first quarterly interim report. It is subject to a corporate income tax rate of 20% on the first $50,000 of taxable income and 35% on taxable income above $50,000. Its estimated pretax accounting income for 2014, by quarter, is: 1st Quarter $75,000 2nd Quarter $165,000 3rd Quarter $143,000 4th Quarter $120,000 2014 Total $503,000 Est. Income Nettle expects to earn and receive operating income for the year and does not contemplate any changes in accounting procedures or principles that would affect its pretax accounting income. Required: 1. Determine Nettle's estimated effective tax rate for 2014. 2. Prepare a schedule to show Nettle's estimated net income for each quarter of 2014