Beauregard Imports has pretax income of $75,000. If their tax rate is 35%, what will be their after-tax income?

Name: Beauregard Imports has pretax income of $75,000. If their tax rate is 35%, what will be their after-tax income?
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Question

Quizplus · Accepted Answer

To find the after-tax income, we need to multiply the pretax income by (1 - tax rate). 
After-tax income = Pretax income x (1 - tax rate) 
After-tax income = $75,000 x (1 - 0.35) 
After-tax income = $48,750 
Therefore, the answer is choice A, $48,750.

Beauregard Imports Has Pretax Income of $75,000