Need answer the question Suppose pre-tax earnings are $100,000.00 and the corporate taxrate is 42%. How much additional money can a business ownerreceive by declaring the earnings as personal income which istaxed at a rate of 31%?a. $11,000.00b. $42,000.00c. $31,000.00d. $3,200.00

Pre-tax earnings of a business owner is $100,000Corporate tax rate is 42% & personal income tax…

Answered: Suppose pre-tax earnings are…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8MC: A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be...

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The following extracts are from Hassan's financial statements: $ 10,200 (1,600) (3,300) 5,300 Profit before interest and tax Interest Таx Profit after tax Share capital Reserves 20,000 15,600 35,600 6,900 42,500 Loan liability What is Hassan's return on capital employed?
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Suppose pre-tax earnings are $100,000.00 and the corporate tax rate is 42%. How much additional money can a business owner receive by declaring the earnings as personal income which is taxed at a rate of 31%? a. $11,000.00 b. $42,000.00 c. $31,000.00 d. $3,200.00