Garner Grocers Began Operations in 2008

question 66

Multiple Choice

Garner Grocers began operations in 2008. Garner has reported the following levels of taxable income (EBT) over the past several years. The corporate tax rate was 34% 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 2008. What is the amount of taxes the company paid in 2011?

• A) $ 92,055
• B) $ 96,900
• C) $102,000
• D) $107,100
• E) $112,455

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Definitions:

Competitive Sales Position

A company's strategic advantage in the market based on factors such as product quality, price, and customer service, which enables it to outsell its competitors.

Unilateral Mistake

A mistake by one party to the agreement.

Innocent Misrepresentation

A false statement of a material fact made by a party that honestly believed the fact to be true.

Erroneous Statement

A declaration or assertion that is incorrect or mistaken in fact.