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2006 Taxable income $2,000 Tax payment $400 2007 Taxable income $6,250 Tax payme

ID: 2695967 • Letter: 2

Question


2006







Taxable income $2,000






Tax payment $400






2007







Taxable income $6,250






Tax payment $1,250






2008







Taxable income $12,500






Tax payment $2,500






2009







Taxable income $6,250






Tax payment $1,250






2010







Taxable income ($21,250)















(a) What is the firm's tax liability for the year 2010?























(b) What are the firm's adjusted tax liabilities for the years 2006 through 2010?





















(c) What total tax refund will the firm receive after the adjustment?





2006







Taxable income $2,000






Tax payment $400






2007







Taxable income $6,250






Tax payment $1,250






2008







Taxable income $12,500






Tax payment $2,500






2009







Taxable income $6,250






Tax payment $1,250






2010







Taxable income ($21,250)















(a) What is the firm's tax liability for the year 2010?























(b) What are the firm's adjusted tax liabilities for the years 2006 through 2010?





















(c) What total tax refund will the firm receive after the adjustment?




Explanation / Answer

a) $21250/5 = $ 4250