Answer:
$7,000,000
Step-by-step explanation:
The taxable income is the amount of money (income earned or unearned) by an individual or an organization that creates a potential tax liability.
The formula is shown below:
Taxable Income Formula = Gross Total Income – Total Exemptions – Total Deductions
Note that $5,000,000 for 2015 is an operating loss which is a deduction.
Gross Total Income = $4000000+$4000000+$4000000 = $12,000,000
Total Exemption = 0
Total Deductions = $5,000,000
Taxable Income Formula = $12,000,000 - $5,000,000 = $7,000,000
