Salinger Software was founded in 2015. The company lost money each of its first three years, but was able to turn a profit in 2018. Salinger's operating income (EBIT) for its first four years of operations is reported below. YearEBIT2015-$100,000,0002016-$150,000,0002017-$100,000,0002018$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 carry-back, carry-forward provisions in the Tax Code, and assume that the current provisions were applicable in 2015. How much tax did the company pay in 2018?
A. $121,275,000
B. $132,300,000
C. $135,975,000
D. $122,500,000
E. $101,675,000
Answer: D
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