Garner Grocers Began Operations in 2015 ?
A) $559,300
B) $493,850
C) $654,500
D) $595,000
E)

question 51

Multiple Choice

Garner Grocers began operations in 2015.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 2015.What is the amount of taxes the company paid in 2018? $$\begin{array} { r r } \text { Year } & \text { Taxable Income } \\\hline 2015 & - \$ 1,750,000 \\2016 & \$ 200,000 \\2017 & \$ 500,000 \\2018 & \$ 2,800,000\end{array}$$
?

• A) $559,300
• B) $493,850
• C) $654,500
• D) $595,000
• E) $725,900

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Definitions:

Treasury Bills

Treasury Bills are short-term government securities issued at a discount from the face value and redeemed at full face value upon maturity, typically used as a low-risk investment.

Opportunity Cost

The price paid for not selecting the next most favorable choice when deciding.

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can invest in debt securities, influenced by the overall demand and supply.

Precautionary Motive

The need to hold cash as a safety margin to act as a financial reserve.