Snow Corporation began business on May 1,2014,and elected to use the calendar year for tax purposes.Brown Corporation,a calendar year corporation,sold all of its assets and liquidated as of April 30,2014.Neither Snow Corporation nor Brown Corporation must annualize their income for their 2014 returns.

Question

Quizplus · Accepted Answer

The purpose of annualizing income is to prevent the taxpayer from taking undue advantage of the progressive tax rate schedule.Annualization is not required in the corporation's first tax year,nor for its final tax year.

Snow Corporation Began Business on May 1,2014,and Elected to Use