Loomix Inc,is a company that has a history of losing money and has accumulated $100 million in net operating losses. You expect the company to generate an operating loss of $50 million next year, followed by pre-­‐tax operating profits of $75 million and $125 million in the following two years. If your marginal tax rate is 40%.

How much will Loomix pay cumulatively as taxes in the next three years?

Answer rating: 100% (QA)

Since Loomix has accumulated 100 million in net operating losses it can use these losses ... View the full answer