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Use the information for the question(s) below. Ford Motor Company is considering launching a new line of Plug - in Electric SUVs. The heavy advertising
Use the information for the question(s) below. Ford Motor Company is considering launching a new line of Plug - in Electric SUVs. The heavy advertising expenses associated with the new SUV launch would generate operating losses of $35 million next year. Without the new SUV, Ford expects to earn pre - tax income of $80 million from operations next year. Ford pays a 21% tax rate on its pre - tax income. The amount that Ford Motor Company will owe in taxes next year with the launch of the new SUV is closest to: A. $9.45 million. B. $31.5 million. C. $24.0 million. D. $56.0 million
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