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Mondock Corporation is subject to income taxes at a rate of 20% on its first $40,000 of pretax income and 30% on any pretax income in excess of $40,000. During the first quarter of the current year, Mondock earned $50,000 pretax income. At that time, it estimated that it would earn $80,000 of pretax income during the remaining three quarters (i.e., a total of $130,000 for the year). Prepare a schedule to determine the estimated income tax of Mondock Corporation for the first quarter.
Financial Statement Analysis and Preparation
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