Blue Ridge Resorts has the following pretax information available for the current year: Assuming all receipts are taxable and all costs are tax-deductible, what will be Blue Ridge's after-tax net income for the year if their tax rate is 30%?

Question

Blue Ridge Resorts has the following pretax information available for the current year:  Assuming all receipts are taxable and all costs are tax-deductible, what will be Blue Ridge's after-tax net income for the year if their tax rate is 30%?

Quizplus · Accepted Answer

To calculate the after-tax net income, we need to apply the tax rate of 30% to the pretax net income of $500,000.

30% of $500,000 = $150,000

Subtracting the tax amount from the pretax net income, we get:

$500,000 - $150,000 = $350,000

Therefore, Blue Ridge's after-tax net income for the year is $350,000.

Blue Ridge Resorts Has the Following Pretax Information Available for the Current