4. Company C is subject to a progressive tax rate schedule whereby additional amounts of income are taxed at increasing rates. The recognition of revenues and expenses for accounting purposes and tax...

4. Company C is subject to a progressive tax rate schedule whereby additional amounts of income are taxed at increasing rates. The recognition of revenues and expenses for accounting purposes and tax purposes is exactly the same, and no tax credits are available. Why would the effective tax rate for the second quarter be lower than for the first quarter of the current year?