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Quince Corporation Changes Its Year-End from a Fiscal Year-End to a Calendar

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Essay

Quince Corporation changes its year-end from a fiscal year-end to a calendar year-end. The corporation has taxable income of $39,000 for its 3-month short period beginning October 1, 2016 and ending December 31, 2016. Calculate the corporation's tax for the short period.


Definitions:

Gross Earnings

The total amount an employee earns before deductions.

Net Earnings

Take-home pay, calculated by subtracting total deductions from gross earnings.

Tax Liability

The total amount of tax that an individual or entity is legally obligated to pay to a tax authority.

Weekly Salary

The total amount of money earned by an employee for work done in a single week.

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