Use the Information for the Question(s) Below

question 10

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 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

---

Definitions:

Medullary Cavity

The central cavity of bone shafts where red or yellow marrow is stored.

Endosteum

A thin vascular membrane of connective tissue that lines the inner surface of the bony tissue that forms the medullary cavity of long bones.

Membrane

A thin layer of tissue or material that acts as a selective barrier, controlling the passage of substances in and out of cells or organelles.

Fontanels

Soft spots on a baby's skull where the bones have not yet fused, allowing for growth of the brain and skull during infancy.