Luther Industries has outstanding tax loss carryforwards of $70 million from losses over the past four years.If Luther earns $15 million per year in pre-tax income from now on,Luther will first pay taxes in

Question

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D) The number of years the tax loss carryforwards will last can be calculated as the tax loss carryforward divided by the annual pre-tax income or:
Years with no tax = 11ea7e5a_6e53_49e9_9a0a_0f7e77f39898_TB1623_11 = 4.67 years, so Luther won't have to pay taxes for the next four years, but will have to start paying some taxes 5 years from now.

Luther Industries Has Outstanding Tax Loss Carryforwards of $70 Million