Salinger Software was founded in 2012. The company lost money each of its first three years, but was able to turn a profit in 2015. Salinger's operating income (EBIT) for its first four years of operations is reported below.
able[[Year,EBIT],[2012,-$50,000,000
Salinger Software was founded in 2012. The company lost money each of its first three years, but was able to turn a profit in 2015. Salinger's operating income (EBIT) for its first four years of operations is reported below. Year EBIT 2012 -$50,000,000 2013 -$150,000,000 2014 -$100,000,000 2015 $700,000,000
The company has no debt, so operating income equals earnings before taxes. The corporate tax rate has remained constant at 35%. Assume that the company took full advantage of the carry-back, carry-forward provisions in the Tax Code, and assume that the current provisions were applicable in 2012. How much tax did the company pay in 2015?
$147,000,000
$165,200,000
$158,200,000
$140,000,000
$107,800,000