Question

Most corporations use the annualized income method to determine their required annual payment for purposes of making quarterly estimated payments.

a) True
b) False

Answer 1

The statement in the question is false. Most corporations use the annualized income method to determine their estimated tax payments.

Step-by-step explanation:

The statement in the question is false. Most corporations use the annualized income method to determine their estimated tax payments

Under the annualized income method, corporations estimate their taxable income each quarter based on the actual income they have earned so far that year. This allows them to calculate their estimated tax liability more accurately and make four equal quarterly payments throughout the year.

Using the annualized income method helps corporations avoid underpaying or overpaying their taxes and ensures that their estimated payments are more reflective of their actual tax liability.