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Tony Inc began operating in 2015. The company lost money the first year but has been...

Tony Inc began operating in 2015. 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 percent. Year Taxable Income 2015 -$4 million 2016 1 million 2017 2 million 2018 3 million 2019 5 million 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 during these years. How much did the company pay in taxes in 2018 and 2019 respectively?

a)$0, $1,750,000

b)$700,000, $1,750,000

c)$800,000, $1,750,000

d)$600,000, $700,000

e)$300,000, $800,000

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jeff jeffy answered 3 weeks ago
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