Question

Quarterly AETR and quarterly book income (loss) are as follows:

a.1.40% $400 pre tax income
b.2.35%$100 pre tax income
c.3.37% $200 pre tax loss
d.4.35% $700 pre tax income
What would be the ETR per quarter

Answer 1

The ETR (Effective Tax Rate) per quarter can be calculated by dividing the income tax expense by the pre-tax income and multiplying by 100.

Step-by-step explanation:

The ETR (Effective Tax Rate) per quarter can be calculated by dividing the income tax expense by the pre-tax income and multiplying by 100. Let's calculate the ETR for each scenario:

1. For scenario a, the ETR would be 1.4% ($400 / $400 x 100).
2. For scenario b, the ETR would be 2.35% ($100 / $100 x 100).
3. For scenario c, the ETR would be -3.37% ($200 / -$200 x 100).
4. For scenario d, the ETR would be 4.35% ($700 / $700 x 100).

Therefore, the ETR per quarter for each scenario would be 1.4%, 2.35%, -3.37%, and 4.35% respectively.

1