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Salinger Software was founded in 2 0 0 5 . The company lost money each of its first three years, but was able to turn

Salinger Software was founded in 2005. The company lost money each of its first three
years, but was able to turn a profit in 2008. Salinger's operating income (EBIT) for its
first four years of operations is reported below.
The company has no debt, so operating income equals earnings before taxes. The
corporate tax rate has remained constant at 35%. Assume that the company took full
advantage of the carry-back, carry-forward provisions in the Tax Code, and assume that
the current provisions were applicable in 2005. How much tax did the company pay in
2008?
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