John has an extra bedroom in his house that he occasionally rents out using the service Airbnb.John charges $100 per night,and his room is occupied by a renter approximately 100 nights per year.He thinks that if he repaints the room the photos he posts on Airbnb to draw customers will be more attractive,allowing him to charge $110 dollars per night and to rent the room for 120 nights per year.John's tax rate is 28%.What is the annual,after-tax,incremental revenue that John expects from his painting project?
A) $13,200
B) $9,504
C) $3,200
D) $2,304
Correct Answer:
Verified
Q21: The book value of an asset is
Q29: In case of an existing asset which
Q41: Recaptured depreciation is the portion of the
Q43: The tax treatment regarding the sale of
Q44: If an asset is sold for book
Q47: If an asset is sold for more
Q51: If an asset is sold for less
Q55: If an asset is depreciable and used
Q56: Capital gain is the portion of the
Q57: The book value of an asset is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents