Question

Volos Company (a calendar-year corporation) began operations in March of 2016 and was not profitable through December of 2017. Volos has been profitable for the first quarter of 2018 and is trying to determine its first quarter estimated tax payment. It will have no estimated tax payment requirement in 2018 because it had no tax liability for the 2017 tax year and has been in business for at least 12 months.

a) True
b) False

Answer 1

If Volos had no tax liability for the 2017 tax year and has been in business for at least 12 months, it will not have an estimated tax payment requirement in the first quarter of 2018.

Step-by-step explanation:

The question is asking whether it is true or false that Volos Company, a calendar-year corporation, will have no estimated tax payment requirement in the first quarter of 2018. According to the information provided, if Volos had no tax liability for the 2017 tax year and has been in business for at least 12 months, it will indeed have no estimated tax payment requirement in 2018. Therefore, the statement is true.