Bradshaw Beverages Began Operations in 2007

question 116

Multiple Choice

Bradshaw Beverages began operations in 2007. The table below contains the company's taxable income during each year of its operations. Notice that the company lost money in each of its first three years. The corporate tax rate has been 40% each year. Assume that the company has taken full advantage of the Tax Code's carry-back, carry-forward provisions, and assume that the current provisions were applicable in 2007. How much did the company pay in taxes during 2011?

• A) $160,000
• B) $168,000
• C) $176,400
• D) $185,220
• E) $194,481

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Definitions:

Uncontrollably

Uncontrollably describes an action or reaction that cannot be controlled or restrained.

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A characteristic of preoperational thought in which a young child focuses (centers) on one idea, excluding all others.