Abdo Corporation received permission to change its tax year-end from December 31 to August 31 in 2017. Its income from January 1 through August 31 is $278,000. What is Abdo's tax liability for its year ended August 2017?
A) $91,670
B) $94,520
C) $108,420
D) $141,780

Question

Quizplus · Accepted Answer

$278,000 x 12/8 = $417,000; $417,000 x .34 = $141,780; $141,780 x 8/12 = $94,520

Abdo Corporation Received Permission to Change Its Tax Year-End from December