c. Decrease second-quarter 2017 pretax loss by $20,000 and decrease the forecasted pretax losses for the balance of the year (quarters 3 and 4) by $20,000. Statutory tax rates for years 2015 through...

c. Decrease second-quarter 2017 pretax loss by $20,000 and decrease the forecasted pretax losses for the balance of the year (quarters 3 and 4) by $20,000. Statutory tax rates for years 2015 through 2017 are as follows: 15% on the first $50,000, 25% on the next $25,000, 34% on the next $25,000, and 39% on remaining income up to $335,000.

Calculate the pretax income (loss) and related tax expense (benefit) for the first and second quarters of 2017 as reported before and after the change in accounting principle.