Gaffey Corporation obtained permission to change from a calendar year to a fiscal year ending May 31,

Question:

Gaffey Corporation obtained permission to change from a calendar year to a fiscal year ending May 31, beginning in 2016. For the short period January 1 through May 31, 2016, the corporation's taxable income was $140,000. For computing the tax, assume a tax rate of 25%.

a. What is Gaffey Corporation's annualized short period income?

b. What is Gaffey Corporation's tax for the short period?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...