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 as of the end of the third quarter

$300,000

Explanation:

Calculation for the annual estimated taxable income as of the end of the third quarter

Using this formula

Annual estimated taxable income=2 × (First quarter taxable income + Second quarter taxable income)

Let plug in the formula

Annual estimated taxable income=2 x ($100,000 + $50,000 )

Annual estimated taxable income=2×$150,000

Annual estimated taxable income=$300,000

Therefore the annual estimated taxable income as of the end of the third quarter will be $300,000

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