How much does the item cost before tax on these financial accounting question? 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: Define Tax SavingsThe amount by which tax liability for an individual or entity is reduced…

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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Similar questions

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Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
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
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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EBIT is $12,000 and interest expense is $3,000. If the tax rate is 20%, what is the net income? $4,200 $9,400 $7,200 O $3,800
Please answer this question correctly. Thank you.
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
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Duval Manufacturing recently reported the following information:Net income $600,000ROA 8%Interest expense $225,000Duval’s tax rate is 35%. What is its basic earning power (BEP)?

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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