Reference no: EM132694865

Problem 1: Bard Co., a calendar-year corporation, reported income before income tax expense of $10,000 and income tax expense of $1,500 in its interim income statement for the first quarter of the year. Bard had income before income tax expense of $20,000 for the second quarter and an estimated effective annual rate of 25%. What amount should Bard report as income tax expense in its interim income statement for the second quarter?

Option 1: $6,000

Option 2: $3,500

Option 3: $5,000

Option 4: $7,500