Lyft began operating in 2014. The company lost money the first year but has been profitable...

Lyft began operating in 2014. The company lost money the first year but has been profitable ever since.The company’s taxable income (EBT) for its first five years is listed below. Each year the company’s corporate tax rate has been 35%.

Year Taxable Income

2014 −$5,000,000
2015 $2,000,000
2016 $2,000,000
2017 $2,000,000
2018 $3,000,000

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 2014. How much did the company pay in taxes in 2017 and 2018?

$700,000 and $1,050,000
$350,000 and $1,050,000
$800,000 and $1,200,000
$600,000 and $900,000
None of the above

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Expert Solution

There are 2 methods to explain this problem. I have explained both the methods

jeff jeffy answered 1 week ago

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Is accounts receivable or accounts payable an operating activity? no money has been paid yet.

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