.In 2018,Mays Industries taxable income was -$85,000.In 2019,its taxable income was $120,000. Its corporate tax rate is 25%.Assume that the company takes full advantage of the Tax Code's carry-forward provision.What is the company's tax liability for 2019?

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The company can carry forward the 2018 loss of $85,000 to offset the 2019 taxable income of $120,000, resulting in a taxable income of $35,000 for 2019. The tax liability is 25% of $35,000, which is $8,750.

In 2018,Mays Industries Taxable Income Was -$85,000