Ford is considering launching a new line of electric suvs, Ask an Expert

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Ford is considering launching a new line of electric SUVs. The advertising expense associated with the new SUV launch would generate operating losses of $35 million next year. Without the new SUV, Ford expects to earn pre-tax income of $80 million from operations next year. Ford pays a 30% tax rate on its pre-tax income. What is the amount Ford owe in taxes next year with the launch of the new SUV?

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Category:- Basic Finance
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