In 2015,T Corporation Changed Its Tax Year from Ending Each

question 8

True/False

In 2015,T Corporation changed its tax year from ending each April 30th to ending each December 31st.The corporation earned $60,000 during the period May 1,2015 through December 31,2015.The annualized income for the short year is $90,000.

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Definitions:

Calculate

To determine the amount or number of something mathematically.

Flotation Costs

These are expenses incurred by a company when it issues new securities, including underwriting fees, legal fees, and registration fees.

Retained Earnings

Profits that a company keeps, after dividends are paid, to reinvest in the business or to pay off debt.

Constant Growth

A model assuming that dividends, earnings, or other financial metrics grow at a steady, unchanging rate indefinitely.