Appalachian Airlines began operating in 2004. The company lost money the first year but has been profitable ever since. The company's taxable income (EBT)Assume that the company has taken full advantage of the Tax Code's carry-back, carry-forward provisions and that the current provisions were applicable in 2004. How much did the company pay in taxes in 2007?

Question

Quizplus · Accepted Answer

Since the company was profitable after 2004 and utilized carry-back and carry-forward provisions, it likely offset its initial losses against future profits. Therefore, the taxable income in 2007 would be fully taxed, leading to a tax payment of $800,000.

Appalachian Airlines Began Operating in 2004