Assignment
Appalachian Airlines began operating in 2010. 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%.
|
Year
|
Taxable Income
|
|
2010
|
-$4,000,000
|
|
2011
|
$1,000,000
|
|
2012
|
$2,000,000
|
|
2013
|
$3,000,000
|
|
2014
|
$5,000,000
|
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 2010. How much did the company pay in taxes in 2013?