#2 Gaffey Corporation obtained permission to change from a calendar year to a fiscal year ending May 31, beginning in 2015. For the short period January 1 through May 31, 2015, the corporation’s taxable income was $140,000. For computing the tax, assume a tax rate of 25%
a) What is Gaffey Corporation’s annualized short period income?
b) What is Gaffey Corporation’s tax for the short period?