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Before considering a net operating loss carryforward of $89 million, Fama Corporation reported $110 million of pretax accounting and taxable income in the current year. The income tax rate for all previous years was 35%. On January 1 of the current year, a new tax law was enacted, reducing the rate to 30% effective immediately. Fama's income tax payable for the current year would be: (Round your answer to the nearest whole million.) Multiple Choice $70 million. $16 million. $6 million. $7 million.
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