The projected taxable income of the McAlhany Corporation, formed in 2002, is indicated in the table below. (Losses are shown in parentheses.) What is the corporate tax liability for each year? Assume a constant federal-plus-state tax rate of 40 percent.

YEAR_________________ TAXABLE INCOME

2002....................................... ($ 95,000,000)

2003........................................... 70,000,000

2004........................................... 55,000,000

2005........................................... 80,000,000

2006........................................ (150,000,000)