Toro IncReceived Permission from the IRS to Change Its Taxable Year

question 72

Multiple Choice

Toro Inc.received permission from the IRS to change its taxable year from a fiscal year ending July 31 to a calendar year.Consequently,Toro filed a short-period return for the five-month period from August 1 through December 31.The taxable income reported on the return was $65,000.Use the corporate tax rates in Appendix C of the text to compute Toro's tax on this income (to the nearest dollar) .

• A)$11,250
• B)$18,371
• C)$25,350
• D)$44,090

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Definitions:

Capital Gains

The financial gain achieved when the selling price of an asset or investment surpasses its original buying price.

Appreciate

To increase in value or price over time.

Yield

Yield is the income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.

Dividend Growth Rate

The annual percentage rate at which a company's dividend payments to shareholders increase.