Luke Skywalker, Inc. compiled the following information for…
Luke Skywalker, Inc. compiled the following information for the first three quarters of 20X1. Information regarding Quarters 1 and 2: Quarter 1 operating income = $150,000 Quarter 2 operating income = $250,000 The estimated effective tax rate for each of the first two quarters was 32%. Information regarding Quarter 3: Quarter 3 operating income = $200,000. The operating expenses factored into the calculation of third-quarter operating income include $72,000 incurred during the third quarter for an advertising campaign. Management expects that 75% of the benefit will occur in the third quarter and 25% of the benefit will occur in the fourth quarter. At the end of the third quarter, the estimated annual operating income is $950,000. Luke Skywalker, Inc. estimated its permanent differences between accounting income and taxable income and concluded that a dividend exclusion of $48,000 and an $80,000 payment of life insurance premiums were anticipated. The combined federal and state tax rate is 40%. What is the provision for income taxes (i.e., the income tax expense (benefit)) for the third quarter of 20X1? Round your answer to the nearest dollar.