The tax savings from an expense item are$75,000 for a company that spends 25%of its income to taxes. How much doesthe item cost before tax?a. $250,000b. $ 200,000c. $150,000d. $300,000

Step 1: Identify the given tax savingsStep 2: Identify the tax rateStep 3: Use the Tax Savings…

Answered: The tax savings from an expense item…

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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How much does the item cost before tax on these financial accounting question?
General Accounting Question Solution
A company wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be the company’s pre-tax income in order to have $60,000 after-taxes? a.$143,000 b.$88,235 c.$19,200 d.$79,200
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You have calculated the adjusted profit for the company to be $2,000,000. Capital allowance was $20,0000 . The tax rate is 25%. Estimated tax paid during the year is $750,000. Employment Tax Credit available (which is non-refundable) is $700,000. The tax refundable for this company is. Question 5Answer a. $1,100,000 b. $500,000 c. $200,000 d. $750,000
You have calculated the adjusted profit for the company to be $2,000,000. Capital Allowance was $20,000. The tax rate is 25%. Estimated tax paid during the year is $750,000. Employment Tax Credit available (which is non-refundable) is $700,000. The tax refundable for this company is. a. $500,000 b. $1,100,000 c.$750,000 d. $200,000
You have calculated the adjusted profit for the company to be $2,000,000. The tax rate is 25%. Estimated tax paid during the year is $750,000. Employment Tax Credit available (which is non-refundable) is $700,000. The tax refundable for this company is. a.$950,000 b.$200,000 c.$500,000 d.$250,000
You have calculated the adjusted profit for the company to be $2,000,000. Capital Allowance was $20,000. The tax rate is 25%.Estimated tax paid during the year is $750,000. Employment Tax Credit available (which is nonrefundable)is $700,000. The tax refundable for this company is.a. $950,000b. $500,000c. $250,000d. $200,000

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The tax savings from an expense item are $75,000 for a company that spends 25% of its income to taxes. How much does the item cost before tax? a. $250,000 b. $ 200,000 c. $150,000 d. $300,000