15. Appalachian Airlines began operating in 2004. The company lost money the first year but has been profitable ever since. The companys taxable income (EBT) for its first five years is listed below. Each year the companys corporate tax rate has been 40%.

Year Taxable Income

2004 -$7,000,000

2005 $1,000,000

2006 $2,000,000

2007 $3,000,000

2008 $5,000,000

Assume that the company has taken full advantage of the Tax Codes carry-back, carry-forward provisions and that the current provisions were applicable in 2004. How much did the company pay in taxes in 2008?

a. $0

b. 800,000

c. 400,000

d. 1,600,000

e. None of the above