ModeldrillTax only when there is a profit
A financial modeling exercise from Modeldrill. Solve it with a live spreadsheet grid in your browser, with Fill right and Fill down, and it is checked the moment you submit.
The task
Fill tax expense in row 6 at the rate in B2. In a loss year the tax is zero, not a negative number. Use MAX.
What this exercise teaches
A plain earnings times rate would book a tax refund in every loss year. MAX(0, ...) is the simple floor; carrying losses forward is the next step up.
A hint if you get stuck
MAX(0, something) returns the something when it is positive and 0 otherwise.
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