Luther Industries Has Outstanding Tax Loss Carryforwards of $70 Million

question 98

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

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