Mays Industries was established in 2003. Since its inception, the company has generated the following levels of taxable income (EBT):
Year Taxable Income
2003 $50,000
2004 $40,000
2005 $30,000
2006 $20,000
2007 -$92,500
2008 $60,000
Assume that each year the company has faced a 40% income tax rate. Also, assume that the company has taken full advantage of the Tax Code's carry-back, carry-forward provisions, and assume that the current provisions were applicable in 2003. What is the company's tax liability for 2008?
a. $5,810
b. $6,790
c. $7,000
d. $7,420
e. $5,740