Bradshaw Beverages Began Operations in 2014 ?
Assume That the Company Has Taken Full Advantage of Company's

question 14

Multiple Choice

Bradshaw Beverages began operations in 2014.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. $$\begin{array} { r r } \text { Year } & \text { Taxable Income } \\2014 & - \$ 100,000 \\2015 & - \$ 500,000 \\2016 & - \$ 200,000 \\2017 & \$ 800,000 \\2018 & \$ 1,000,000\end{array}$$
?
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 2014.How much did the company pay in taxes during 2018?

• A) $460,000
• B) $400,000
• C) $384,000
• D) $372,000
• E) $432,000

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Definitions:

Profits

The financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Ethical Thinking

The process of considering and applying moral principles and values in decision-making.

Values

Fundamental beliefs or ideals that guide an individual's or organization's behavior and decision-making process.

Behaviors

Actions or reactions of an individual or group in response to external or internal stimuli.