Appalachian Airlines began operating in 2004. The company lost money the first year but has been profitable ever since. The company’s taxable income (EBT) for its first five years is listed below. Each year the company’s corporate tax rate has been 40%.
| Year | Taxable Income |
| 2004 | -$4,000,000 |
| 2005 | $1,000,000 |
| 2006 | $2,000,000 |
| 2007 | $3,000,000 |
| 2008 | $5,000,000 |
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