Salinger Software was founded in 2012. The company lost money in each of its first three years, but was able to turn a profit in 2015. Salinger's operating income (EBIT) for its first four years of operations is reported below. 

Year                    EBIT 

2012                   -$200,000,000 

2013                   -$150,000,000 

2014                   -$100,000,000 

2015                    $700,000,000 

The company has no debt, so operating income equals earnings before taxes. The corporate tax rate has remained constant at 35%. Assume that the company took full advantage of the carryover and carryover provisions of the Tax Code, and assume that the current provisions were applicable in 2012. How much tax did the company pay in 2015?

Answer rating: 100% (QA)

To calculate the amount of tax that Salinger Software paid in 2015 we need to determine the taxable ... View the full answer