Acrobatica, Inc., is a C corporation that files its return using a fiscal year. For the return for the fiscal year ending on April 30, 2018, what corporate tax rate(s) applies to Acrobaticas income?

A: The progressive tax rates, including a potential 3% or 5% surtax, in effect prior to the passage of the TCJA. Acrobatica will transition to the flat rate of 21% with the first return it files for a fiscal year beginning on or after January 1, 2018.

B: A flat tax rate income of 21% on all its income because the return is for a tax year ending in 2018. No surtaxes will apply.

C: A blended tax rate that applies the progressive rates to all income attributable to calendar year 2017 and applies a flat rate of 21% to all income attributable to calendar year 2018. Surtaxes may apply only to the 2017 portion of the income.

D: A flat rate of 21% on all income; however, a surtax of 5% or 3% may apply if Acrobaticas taxable income places it in the appropriate range.