Snow Corporation began business on May 1, 2017, 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, 2017. Neither Snow Corporation nor Brown Corporation must annualize their income for their 2017 returns.

Question

Quizplus · Accepted Answer

Both Snow Corporation and Brown Corporation had less than 12 months of activity in 2017, so they do not need to annualize their income for tax purposes.

Snow Corporation Began Business on May 1, 2017, and Elected