1. Fly Green Airlines has the following record of earnings for the years 2006 through 2013.

1. Fly Green Airlines has the following record of earnings for the years 2006 through 2013.
a. Indicate the carryback/carry forward amounts.
b. Calculate the tax refund in 2011 if their tax rate during this time period has been 40%.
c. Indicate the carry forward, the taxable earnings, and tax liability for 2012 and 2013.
Year Taxable earnings
2006 $ 400,000
2007 500,000
2008 600,000
2009 400,000
2010 300,000
2011 1,500,000
2012 500,000

2. DirectJet has $500,000 of earnings before interest and taxes at the year end. Interest expenses for the year were $10,000. The airline expects to distribute $100,000 in dividends. Calculate the earnings after taxes for the airline assuming a 40 percent tax on ordinary income.

3. The BAA airport had a retained earnings balance of $850,000 at the beginning of 2012. By the end of 2012, the airport’s retained earnings balance was $950,000. During 2012, the airport earned $245,000 as net profits after paying its taxes. The airport was then able to pay its preferred stockholders $45,000. Compute the common stock dividend per share in 2012 assuming 10,000 shares of common stock outstanding.