If Thomas has a 28% tax rate and a 8% after-tax rate of...
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Accounting
If Thomas has a 28% tax rate and a 8% after-tax rate of return, $56,000 of income in five years will cost him how much tax in today's dollars? Use Exhibit 3.1. (Round present and future value factor(s) to 3 decimal places.)
Multiple Choice
a) $56,000.
b) $15,680.
c) $38,910.
d) $10,678.
e) None of the choices are correct.
EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Return
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