If annual lease payments for a firm are $26,000, calculate the after-tax lease payments, given that the tax rate is 35%

Name: If annual lease payments for a firm are $26,000, calculate the after-tax lease payments, given that the tax rate is 35%
Brand: Quizplus
Rating: 4.8 (49 reviews)

Question

Quizplus · Accepted Answer

After-tax lease payments can be calculated as: 
After-tax lease payments = Annual lease payments x (1 - Tax rate) 
After-tax lease payments = $26,000 x (1 - 0.35) = $16,900. Therefore, the answer is option B.

If Annual Lease Payments for a Firm Are $26,000, Calculate