Use the Information for the Question(s)below

question 1

Multiple Choice

Use the information for the question(s) below.
Ford Motor Company is considering launching a new line of Plug-in Electric SUVs.The heavy advertising expenses associated with the new SUV launch would generate operating losses of $35 million next year.Without the new SUV,Ford expects to earn pre-tax income of $80 million from operations next year.Ford pays a 21% tax rate on its pre-tax income.
-The amount that Ford Motor Company will owe in taxes next year without the launch of the new SUV is closest to:

• A)$16.8 million.
• B)$56.0 million.
• C)$31.5 million.
• D)$9.45 million.

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Definitions:

Health Care Services

Professional medical or therapeutic services provided to individuals to maintain or improve their health status.

Extended Coverage

An insurance policy feature that provides additional benefits or extends coverage beyond the basic terms of the policy.

Tort of Negligence

A legal claim arising when one party's failure to exercise reasonable care results in harm or damage to another party.

Plaintiff

The party who initiates a lawsuit in civil court proceedings.