Welch Inc.has used a fiscal ending September 30 as its taxable year since its incorporation in 1988.The shareholders have decided to shut down Welch's business and dissolve the corporation on March 31.Which of the following statements is false?

Question

Quizplus · Accepted Answer

A corporation's final tax return should cover the period from the beginning of its fiscal year to the date of dissolution. Since Welch Inc. has a fiscal year ending September 30, its final tax return should include income from October 1 to March 31, not January 1 to March 31.

Welch IncHas Used a Fiscal Ending September 30 as Its Taxable