The tax savings from a business deduction are $31,500 for a corporation with a 30% tax rate. What is the pre-tax cost of this deduction? (a) $94,500 (b) $105,000 (c) $63,000 (d) $9,450
The tax savings from a business deduction are $31,500 for a corporation with a 30% tax rate. What is the pre-tax cost of this deduction? (a) $94,500 (b) $105,000 (c) $63,000 (d) $9,450
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 72P
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Transcribed Image Text:The tax savings from a business deduction are $31,500 for a corporation with
a 30% tax rate. What is the pre-tax cost of this deduction?
(a) $94,500
(b) $105,000
(c) $63,000
(d) $9,450
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