Laura Corporation changed its tax year-end from June 30th to December 31st in 2010.The income for the period July 1,2010 through December 31,2010 was $45,000.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 July - December 2010 income will be taxed at 34%.

Question

Quizplus · Accepted Answer

The income for the period July 1, 2010 through December 31, 2010 was $45,000, which is greater than $34,000. Therefore, a portion of Laura's July - December 2010 income will be taxed at 34%.

Laura Corporation Changed Its Tax Year-End from June 30th to December