#2 Gaffey Corporation obtained permission to change from a calendar year to a fiscal year ending May 31, beginning in 2015.

#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?

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