Coldfoot Corp. estimates that its 20-1 income tax will be $74,000. Based on this estimate, it will make four quarterly payments of $18,500 each on April 15, June 15, September 15, and December 15.
To calculate the estimated quarterly tax payments made by Coldfoot Corp., we need to divide the total estimated annual tax by the number of quarterly payments.
In this case, the estimated income tax for the year is $74,000, and Coldfoot Corp. will make four quarterly payments equally spread throughout the year.
To calculate the amount for each quarterly payment, we divide $74,000 by 4:
$74,000 / 4 = $18,500
Therefore, Coldfoot Corp. will make four quarterly tax payments of $18,500 each on April 15, June 15, September 15, and December 15.