Question
Bradshaw Beverages began operations in 2011. The table below contains the companys taxable income during each year of its operations. Notice that the company lost
Bradshaw Beverages began operations in 2011. The table below contains the companys taxable income during each year of its operations. Notice that the company lost money in each of its first three years. The corporate tax rate has been 40% each year.
Year Taxable Income
2011 -$900,000
2012 -$500,000
2013 -$200,000
2014 $800,000
2015 $1,000,000
Assume that the company has taken full advantage of the Tax Codes carry-back, carry-forward provisions, and assume that the current provisions were applicable in 2011. How much did the company pay in taxes during 2015?
Answer options: $92,000 $80,000 $62,400 $68,800 $81,600
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