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

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

Quizplus · Accepted Answer

The after-tax lease payments can be calculated by multiplying the annual lease payments by (1 - marginal tax rate). 
After-tax lease payments = $26,000 x (1 - 0.35) = $16,900. 
Therefore, the correct answer is B.

If Annual Lease Payments for a Firm Are $26,000,calculate the After-Tax