Garner Grocers

Garner Grocers began operations in 2005. Garner has reported the following levels of taxable income (EBT) over the past several years. The corporate tax rate was 34% each year. Assume that the company has taken full advantage of the Tax Code’s carry-back, carry-forward provisions, and assume that the current provisions were applicable in 2005. What is the amount of taxes the company paid in 2008?

Year Taxable Income

2005 -$3,200,000

2006 $200,000

2007 $500,000

2008 $2,800,00

a. $92,055

b. $96,900

c. $102,000

d. $107,100

e. $112,455