Don't use ai given answer general accounting question Bluestone Corporation reported a pretax income of $800,000. Thecompany was previously taxed at a rate of 20%, but due to newlegislation, the tax rate has been reduced to 18%. How does thechange in tax rate affect net income, and what will be the new netincome after taxes?

Step 1: Definition of Net Income After TaxesNet income after taxes is the amount of earnings a…

Answered: Bluestone Corporation reported a pretax…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section2.A: Taxes

Problem 3P

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Calculate Accounting income after tax?
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Bluestone Corporation reported a pretax income of $800,000. The company was previously taxed at a rate of 20%, but due to new legislation, the tax rate has been reduced to 18%. How does the change in tax rate affect net income, and what will be the new net income after taxes?