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McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver
Edition 3ISBN: 978-0077328368McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver
Edition 3ISBN: 978-0077328368 Exercise 64
Assume Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash payments related to her business.Calculate the after-tax cost of each payment assuming she has a 25 percent marginal tax rate.
a.$2,000 payment for next year's property taxes on her place of business.
b.$800 to reimburse the cost of meals incurred by employees while traveling for the business.
c.$1,200 for football tickets to entertain out-of-town clients during contract negotiations.
d.$500 contribution to the mayor's re-election campaign.
a.$2,000 payment for next year's property taxes on her place of business.
b.$800 to reimburse the cost of meals incurred by employees while traveling for the business.
c.$1,200 for football tickets to entertain out-of-town clients during contract negotiations.
d.$500 contribution to the mayor's re-election campaign.
Explanation
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a.It is given that S is a cash method ca...
McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver
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