What were the firms income taxes for each year

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Reference no: EM131179553

Over the last five years, corporation a has been consistently profitable. its earnings before taxe were as follows earnings:

1 - $1,000

2 - $3,000

3 - $4300

4 - $5200

5 - $4400

a. If the corporate tax rate was 25 percent, what were the firms income taxes for each year?

b. Unfortunatly, in year 6 the firm experienced a major decline in sales, which resulted in a loss of $10,800. What impact will the loss have on the firms taxes for each year if the permitted carryback is two years?

Reference no: EM131179553

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