Appalachian Airlines began operating in 2019. The company lost money in 2020. The company's taxable income (EBT) for its first five years is listed below. Each year the company's corporate tax rate has been 21%. Year Taxable Income 2019 $4,000,000 2020 -$4,000,000 2021 $2,000,000 2022 $4,000,000 2023 $5,000,000 Assume that the company has
Appalachian Airlines began operating in 2019. The company lost money in 2020. The company's taxable income (EBT) for its first five years is listed below. Each year the company's corporate tax rate has been 21%.
Year Taxable Income
2019 $4,000,000
2020 -$4,000,000
2021 $2,000,000
2022 $4,000,000
2023 $5,000,000
Assume that the company has taken full advantage of the Tax Code's carry-forward provisions (under the Tax Cuts& Jobs Act of 2017) and that the current provisions were applicable in 2020. How much did the company pay in taxes in 2022? Show your calculation. No points will be given to the answer choice without showing your work!
a. $160,000
b. $336,000
c. $672,000
d. $840,000