Salinger Software Was Founded in 2015 ?
the Company Has No Debt,so Operating Income Equals Earnings

question 97

Multiple Choice

Salinger Software was founded in 2015.The company lost money each of its first three years,but was able to turn a profit in 2018.Salinger's operating income (EBIT) for its first four years of operations is reported below. $$\begin{array} { r r } \text { Year } & \text { EBIT } \\2015 & - \$ 100,000,000 \\2016 & - \$ 150,000,000 \\2017 & - \$ 100,000,000 \\2018 & \$ 700,000,000\end{array}$$
?
The company has no debt,so operating income equals earnings before taxes.The corporate tax rate has remained constant at 35%.Assume that the company took full advantage of the carry-back,carry-forward provisions in the Tax Code,and assume that the current provisions were applicable in 2015.How much tax did the company pay in 2018?

• A) $121,275,000
• B) $132,300,000
• C) $135,975,000
• D) $122,500,000
• E) $101,675,000

---

Definitions:

Religious Reasons

Motivations or justifications for actions or beliefs based on religious faith, doctrines, or values.

Literacy Rates

A statistical measure of the proportion of the population over a certain age that can read and write.

Standard Of Living

The level of wealth, comfort, material goods, and necessities available to a person, family, or society.

Population Growth

The increase in the number of individuals in a population, often measured as a percentage of the total population.