Snow Corporation began business on May 1, 2012, 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, 2012. Neither Snow Corporation nor Brown Corporation must annualize their income for their 2012 returns.

Question

Quizplus · Accepted Answer

Since Snow Corporation began business on May 1, 2012, and Brown Corporation liquidated as of April 30, 2012, neither corporation had income for the entire year, and thus they do not need to annualize their income for their 2012 tax returns.

Snow Corporation Began Business on May 1, 2012, and Elected