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Salinger Software was founded in 2012. The company lost money each of its first three years, but was able to turn a profit in 2015.
Salinger Software was founded in 2012. The company lost money each of its first three years, but was able to turn a profit in 2015. Salinger's operating income (EBIT) for its first four years of operations is reported below. Year EBIT -$325,000,000 -$150,000,000 -$100,000,000 $700,000,000 2012 2013 2014 2015 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 2012. How much tax did the company pay in 2015? a. $43,750,000 $53,375,000 $34,562,500 $54,687,500 $47,687,500
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