Finbury Corporation's taxable income for the year ended December 31, 2016, was $2,000,000, on which its tax liability was $680,000. In order for Finbury to escape the estimated tax underpayment penalty for the year ending December 31, 2017, Finbury's 2017 estimated tax payments must equal at least
A: 90% of the 2017 tax liability.
B: 93% of the 2017 tax liability.
C: 100% of the 2017 tax liability.
D: The 2016 tax liability of $680,000
Correct Answer: C. I chose D.
In my notes for estimated tax payments for corporations it stats:
100% current year liability
100% previous year liability
Note – If Corp. had > $1M in revenue previous year
o First Estimated payment based on previous year
o Remainder based on the current year
So since this corporation had greater than one million in revenue for the previous year I thought the first estimated payment would be based on the previous year which is why I chose D. Since the answer is C i'm clearly missing something?
.