Luther Industries Has Outstanding Tax Loss Carryforwards of $70 Million

question 35

Multiple Choice

Luther Industries has outstanding tax loss carryforwards of $70 million from losses over the past four years.If Luther earns $15 million per year in pretax income from now on,in how many years will Luther first pay taxes?

• A)7 years
• B)2 years
• C)4 years
• D)5 years
• E)6 years

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Definitions:

Hallucinogen

A class of drugs that causes users to experience alterations in perception, mood, and thought, often inducing visions or perceptions of things that are not actually present.

Depressant

A substance that reduces arousal or stimulation, effectively slowing down body functions.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, commonly found in drugs or medications.

Psychological Dependence

A form of dependence characterized by a perceived need for a substance or behavior to achieve a sense of well-being or to avoid discomfort.