Using the tax rates shown in Table 2A.1, determine the expected annual tax liability of Kaiser Enterprises (a new firm formed in 2004), if the firm anticipates the following stream of taxable income:
|
Year
|
Taxable income
|
|
2004
|
$30,000
|
|
2005
|
80,000
|
|
2006
|
(150,000)
|
|
2007
|
125,000
|
|
2008
|
150,000
|
|
2009
|
(75,000)
|