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18 November, 12:18

Omnidata uses the annualized income method to determine its quarterly federal income tax payments. It had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters). What is Omnidata's annual estimated taxable income for purposes of calculating the third quarter estimated payment?

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  1. 18 November, 14:05
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    Answer: $300,000

    Explanation:

    Given that,

    Taxable income,

    First quarter = $100,000

    Second quarter = $50,000

    Third quarter = $90,000

    we need to annualized the cumulative taxable income of first half of the year that will have taxable income for the first and second quarters.

    Annualizing the cumulative taxable income:

    = 2 * (First quarter taxable income + Second quarter taxable income)

    = 2 * ($100,000 + $50,000)

    = $300,000

    Therefore, Omnidata's annual estimated taxable income for purposes of calculating the third quarter estimated payment is $300,000.
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