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A firm has the following income (losses). This firm has perfect foresight (it knew beforehand about these profit and loss numbers). The firm faces a

A firm has the following income (losses). This firm has perfect foresight (it knew beforehand about these profit and loss numbers). The firm faces a 20% statutory tax rate in all years, and a discount rate of 10%:\ Year Income\ Year 1 $1000\ Year 2 5000\ Year 3 (100,000)\ Year 4 15,000 \ Year 5 6,000\ Year 6 15,000\ Year 7 (115,000)\ Year 8 1,000,000?\ \ \ After carrying forward all possible losses (and not carrying back), how much taxable income will the firm have in year 6 (ignoring any limitations to carrying forward losses)?

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