Mauve Corporation began operations as a farm supplies business and used a fiscal year ending October 31.
Question:
Mauve Corporation began operations as a farm supplies business and used a fiscal year ending October 31. The company gradually went out of the farm supplies business and into the mail-order Christmas gifts business. The company has received permission from the IRS to change to a fiscal year ending January 31, effective for the year ending January 31, 2017. For the short period November 1, 2016, through January 31, 2017, Mauve earned $20,000. Calculate Mauve's tax liability for the short period November 1, 2016, through January 31, 2017.
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