Uniontown Books Began Operating in 2008

question 87

Multiple Choice

Uniontown Books began operating in 2008. The company lost money its first three years of operations, but has had an operating profit during the past two years. The company's operating income (EBIT) The company has no debt, and therefore, pays no interest expense. Its corporate tax rate has remained at 34% during this 5-year period. What was Uniontown's tax liability for 2012? (Assume that the company has taken full advantage of the carry-back and carry-forward provisions, and assume that the current provisions were applicable in 2008.)

• A) $466,412
• B) $490,960
• C) $516,800
• D) $544,000
• E) $571,200