How much does the item cost before tax on these financial accounting question? XYZ Enterprises benefits from tax savings of$90,000 on an expense item. The companypays 30% of its income in taxes.How much does the item cost before tax?

To determine the before-tax cost of the expense item, we use the tax savings formula: Tax Savings =…

Answered: XYZ Enterprises benefits from tax…

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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XYZ Enterprises benefits from tax savings of $90,000 on an expense item. The company pays 30% of its income in taxes. How much does the item cost before tax?