In 2018,Salinger Software's EBIT Was -$225,000,000

question 108

Multiple Choice

.In 2018,Salinger Software's EBIT was -$225,000,000.In 2019,its EBIT is $300,000,000. The company has no debt,so operating income equals earnings before taxes.Its corporate tax rate is 25%.Assume that the company takes full advantage of the carry-forward provision in the Tax Code..How much tax did the company pay in 2019?

• A) $84,262,500
• B) $60,637,500
• C) $85,837,500
• D) $18,750,000
• E) $20,050,000

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Definitions:

Median

The middle value in a sorted list of numbers, dividing the dataset into two halves.

Set Of Data

A collection of values or observations that can be analyzed statistically.

Mode

The most common number found in a given set of data, marked by the greatest peak on a frequency distribution chart.

Frequency Distribution

A summary of how often various values occur in a data set, often represented in a table or graph.