Snow Corporation was a calendar year corporation that sold all of its assets and liquidated as of April 30,2012.Brown Corporation began business on May 1,2012 and elected to use a calendar year.Both Snow Corporation and Brown Corporation must annualize their income for their 2012 returns.

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Snow Corporation does not need to annualize its income because it liquidated and ceased operations. Brown Corporation, however, must annualize its income since it began operations partway through the year.

Snow Corporation Was a Calendar Year Corporation That Sold All