Use the Information for the Question(s)below

question 70

Multiple Choice

Use the information for the question(s) below.
Ford Motor Company is considering launching a new line of Plug-in Electric SUVs.The heavy advertising expenses associated with the new SUV launch would generate operating losses of $35 million next year.Without the new SUV,Ford expects to earn pre-tax income of $80 million from operations next year.Ford pays a 30% tax rate on its pre-tax income.
-The amount that Ford Motor Company will owe in taxes next year without the launch of the new SUV is closest to:

• A)$24.0 million
• B)$56.0 million
• C)$31.5 million
• D)$13.5 million

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Definitions:

Unconscious Conflict

A struggle or problem that exists in one's unconscious mind, affecting behavior and emotions without the individual's awareness.

Checking Compulsion

A compulsion in which people feel compelled to check the same things over and over.

Nonpathological Caution

A level of prudence or vigilance that is considered normal and healthy, not indicative of a psychological disorder.

Obsessive-Compulsive-Related Disorders

A group of disorders in which obsessive-like concerns drive people to repeatedly and excessively perform specific patterns of behavior that greatly disrupt their lives.