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In 2020, Appalachian Airlines had taxable income of -$3,000,000. In 2021, the company has taxable income of $5,000,000 and its corporate tax rate is 25%.

In 2020, Appalachian Airlines had taxable income of -$3,000,000. In 2021, the company has taxable income of $5,000,000 and its corporate tax rate is 25%. Assume that the company takes full advantage of the Tax Codes carry-forward provision. How much will the company pay in taxes in 2021?

A. $1,452,000

B. $500,000

C. $950,000

D. $1,600,000

E. $200,500

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