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:

Pure

Refers to a substance that is not mixed with any other substance, having a homogenous chemical composition.

Ionization

The process by which an atom or a molecule acquires a negative or positive charge by gaining or losing electrons.

Important Factor

A significant element or aspect that contributes to a result or outcome.

Gas

A state of matter consisting of particles that have neither a defined volume nor defined shape, typically able to expand freely.