Salinger Software was founded in 2011.The company lost money each of its first three years,but was able to turn a profit in 2014.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 2011.How much tax did the company pay in 2014?
A) $114,030,875
B) $120,032,500
C) $126,350,000
D) $133,000,000
E) $140,000,000
Correct Answer:
Verified
Q119: Appalachian Airlines began operating in 2010.The company
Q120: Last year,Stewart-Stern Inc.reported $11,250 of sales,$4,500 of
Q121: Uniontown Books began operating in 2010.The company
Q122: Moose Industries faces the following tax schedule:
Last
Q123: Griffey Communications recently realized $125,000 in operating
Q125: Last year,Martyn Company had $500,000 in taxable
Q126: Collins Co.began operations in 2011.The company lost
Q127: Mays Industries was established in 2009.Since its
Q128: Corporations face the following tax schedule:
Company Z
Q129: Lintner Beverage Corp.reported the following information from
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents