Reference no: EM131571708

Imagine that you are doing some planning for your company. You have estimated the taxable income for the next 6 years, and are interested in forecasting the taxes you will need to pay each year. Assume a 40% tax rate in all years. 

Show the taxes which will be paid each year, and any refund that will be paid. 

Also, estimate any loss carryforward that might still be available at year 6.

Year                         Taxable Income

1                                - $2000

2                                  $8000

3                                  $6000

4                               - $15,000

5                                 $7000

6                               - $5000