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In 2016, T Corporation Changed Its Tax Year from Ending

question 21

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In 2016, 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, 2016 through December 31, 2016. The annualized income for the short year is $90,000.


Definitions:

Fluctuations

Variations or changes in level, degree, or value that occur over a period of time.

Global Marketplace

Refers to the international, interconnected market where businesses from various countries can exchange goods and services.

Direct Investment

A financial commitment made by an entity located in one country to gain controlling interest in a company situated in a different country.

Exporting

The commercial activity of selling products or services made in one nation to purchasers in a different country.

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