FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Salinger Software was founded in 2012. The company lost money each of its first three years, but was able to turn a profit in 2015. Salinger's operating income (EBIT) for its first four years of operations is reported below.
 
Year EBIT
2012 -$50,000,000
2013 -$150,000,000
2014 -$100,000,000
2015 $700,000,000

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 2012. How much tax did the company pay in 2015?
 

Select one:
a.
$147,000,000
b.
$165,200,000
c.
$158,200,000
d.
$140,000,000
e.
$107,800,000
 
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