Question

11. The Dot Corporation has changed its year-end from a calendar year-end to August 31. The...

11. The Dot Corporation has changed its year-end from a calendar year-end to August 31. The income for its short period from January 1 to August 31 is $54,000. The tax for this short period is:
a.$2,040
b.$8,667
c.$11,340
d.$6,250
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Answer #1

Answer:-

d.$2040

Explanation:

A short-year tax return reports less than 12 months of operating results. ... for the short period by multiplying it by the number of months in the short tax year ... Marvel first computes average monthly income of $9,000 ($54,000/6 months)

in the present case Dot Corporation hs short period(January 1 to August 31)

tax rate is $54000/8months = $6750

but we calculate January to march ie; 3 months

and calculate April to August tax was the least amount  ie;$2040

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