Greenfield Enterprises earned a pretax income of $500,000. Previously, the corporate tax rate was 25%, but a new tax law increased the rate to 30%. How does the change in tax rate affect net income, and what will be the new net income after taxes?
Greenfield Enterprises earned a pretax income of $500,000. Previously, the corporate tax rate was 25%, but a new tax law increased the rate to 30%. How does the change in tax rate affect net income, and what will be the new net income after taxes?
Chapter3: Organizing And Financing A New Venture
Section: Chapter Questions
Problem 7EP
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100%
Net income after taxes
Transcribed Image Text:Greenfield Enterprises earned a pretax income of $500,000. Previously, the corporate tax rate was 25%,
but a new tax law increased the rate to 30%. How does the change in tax rate affect net income, and
what will be the new net income after taxes?
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