Laura Corporation changed its tax year-end from July 31st to December 31st in 2017.The income for the period August 1,2017 through December 31,2017 was $35,000.The corporate tax rate is 15% on the first $50,000 of income,25% on income from $50,001 to $75,000,and 34% on income from $75,001 to $100,000.A portion of Laura's June - December 2017 income will be taxed at 34%.

Question

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Since Laura Corporation changed its tax year-end from July 31st to December 31st in 2017, the income for the period August 1, 2017, through December 31, 2017, will be taxed according to the new tax rates. As per the given information, the income for this period was $35,000, which falls under the income range of $75,001 to $100,000, and therefore, a portion of it will be taxed at 34%.

Laura Corporation Changed Its Tax Year-End from July 31st to December