Appalachian Airlines Began Operating in 2011

question 115

Multiple Choice

Appalachian Airlines began operating in 2011.The company lost money the first year but has been profitable ever since.The company's taxable income (EBT) for its first five years is listed below.Each year the company's corporate tax rate has been 40%. Assume that the company has taken full advantage of the Tax Code's carry-back,carry-forward provisions and that the current provisions were applicable in 2011.How much did the company pay in taxes in 2014?

• A) $202,000
• B) $200,000
• C) $184,000
• D) $154,000
• E) $174,000

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Definitions:

Costs and Expenses Forecast

An estimate of future costs and expenses that a business expects to incur over a specific period, often used for budgeting and financial planning purposes.

Additional Shifts

Extra work periods added to a company's regular schedule to increase production or cover demand.

Financial Plan

A comprehensive evaluation of an individual's or organization's current pay and future financial state by using current known variables to predict future income, asset values, and withdrawal plans.

Forecast of Sales

An estimate of the future sales volume over a specific period, based on historical data, market analysis, and other factors.