Appalachian Airlines began operating in 2010 The company lost money

Appalachian Airlines began operating in 2010. The company lost money the first year but has been profitable ever since. The company’s taxable income (EBT) for its first five years is listed below. Each year the company’s corporate tax rate has been 40%.

Year____________________ Taxable Income

2010……………………………..−$4,000,000

2011………………………………$1,000,000

2012………………………………$2,000,000

2013………………………………$3,000,000

2014………………………………$5,000,000

Assume that the company has taken full advantage of the Tax Code’s carry-back, carry-forward provisions and that the current provisions were applicable in 2010. How much did the company pay in taxes in 2013?

Appalachian Airlines began operating in 2010 The company lost money