Fleming, lnc., is a C corporation that file its return using a fiscal year. For the return for the fiscal year ending on April 30, 2018, what corporate tax rate(s) applies to Fleming's income?

A. The progressive tax rates, including a potential 3% or 5% surtax, in effect prior to the passage of the TCJA. Fleming will transition to the flat rate of 21% with the first return it files for a fiscal year beginning on or after January 1,2018.

B. A flat tax rate of 21% on all its income because the return is for a tax year ending in 2018. No surtaxes will apply.

C. A blended tax rate that applies the progressive rates to all income attributable to calendar year 2017 and applies a flat rate of 21% to all income attributable to calendar year 2018. Surtaxes may apply only to the 2017 portion of the income.

D. A flat rate of 21% on all income; however, a surtax of 5% or 3% may apply if Fleming's taxable income places it in the appropriate range.