HomeworkLib
Question

If Julius has a 32 percent tax rate and a 10 percent after-tax rate of return,...

If Julius has a 32 percent tax rate and a 10 percent after-tax rate of return, a $36,000 tax deduction in two years will save how much tax in today's dollars? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.)

$11,520.

$29,736.

None of the choices are correct.

$36,000.

$9,516.
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Hi

Let me know in case you face any issue:

Answer is highlighted in yellow: Solution: $ 9,516 Answer: Explanation: $ 36,000 $ 11,520 Tax deduction Tax saving (36000*32%

0 0
Add a comment
Know the answer?
Add Answer to:
If Julius has a 32 percent tax rate and a 10 percent after-tax rate of return,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • If Julius has a 22 percent tax rate and a 8 percent after-tax rate of return,...

    If Julius has a 22 percent tax rate and a 8 percent after-tax rate of return, $31,000 of income in three years will cost him how much tax in today's dollars? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.) Multiple Choice О $5,415 $24,614 O $6,820 $31,000 O O None of the choices are correct.

  • 1. If Joel earns a 11 percent after-tax rate of return, $10,000 received in two years...

    1. If Joel earns a 11 percent after-tax rate of return, $10,000 received in two years is worth how much today? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.) Multiple Choice $10,000. $8,990. $8,120. $11,100. None of the choices are correct. 2. If Lucy earns a 7 percent after-tax rate of return, $20,000 received in four years is worth how much today? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.) Multiple Choice $20,000. $18,624. $21,909. $15,260....

  • Thank you ! If Julius has a 32 percent tax rate and a 10 percent after-tax...

    Thank you ! If Julius has a 32 percent tax rate and a 10 percent after-tax rate of return, a $36,000 tax deduction in two years will save how much tax in today's dollars? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.) Multiple Choice Ο Ο s36,000. Ο $9,516. Ο $29,736. Ο $11,520. Ο None of the choices are correct. EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Return 4% 5% 6% 7%...

  • If Thomas has a 37 percent tax rate and a 7 percent after-tax rate of return,...

    If Thomas has a 37 percent tax rate and a 7 percent after-tax rate of return, $78,500 of income in five years will cost him how much tax in today's dollars? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.) $29,045. $78,500. None of the choices are correct. $57,646. $20,709.

  • If Nicolai earns an 8 percent after-tax rate of return, $16,500 today would be worth how...

    If Nicolai earns an 8 percent after-tax rate of return, $16,500 today would be worth how much to Nicolai in five years? Use future value of $1. (Round discount factor(s) to four decimal places.) $15,279. $11,238. $17,820. $16,500. None of the choices are correct.

  • If Lucy earns a 11 percent after tax rate of return, $17,000 received in four years...

    If Lucy earns a 11 percent after tax rate of return, $17,000 received in four years is worth how much today? Use Exhibit 31 (Round discount factor(s) to three decimal places.) 21 Multiple Choice $17.000 $15,154 $19,379 S11203

  • If Nicolai earns an 8% after-tax rate of return, $16,500 today would be worth how much...

    If Nicolai earns an 8% after-tax rate of return, $16,500 today would be worth how much to Nicolai in 5 years? Future value of $1. (Round present and future value factor(s) to 5 decimal places.) Multiple Choice None of the choices are correct. $15,279. $11,238. $16,500. $17,820.

  • Assume Rafael can earn a(n) 5 percent after-tax rate of return. Use Exhibit 3.3. Would he...

    Assume Rafael can earn a(n) 5 percent after-tax rate of return. Use Exhibit 3.3. Would he prefer $1,100 today or $1,650 in five years? O $1,100 today $1,650 in five years

  • Anne's marginal income tax rate is 32 percent. She purchases a corporate bond for $10,500 and...

    Anne's marginal income tax rate is 32 percent. She purchases a corporate bond for $10,500 and the maturity, or face value, of the bond is $10,500. If the bond pays 5.2 percent per year before taxes, what is Anne's annual after-tax rate of return from the bond if the bond matures in one year? What is her annual after-tax rate of return if the bond matures in 10 years? (Round your answers to 1 decimal place.) After-Tax Rate Bond matures...

  • Brandon and Jane Forte file a joint tax return and decide to itemize their deductions. The...

    Brandon and Jane Forte file a joint tax return and decide to itemize their deductions. The Fortes' income for the year consists of $119,100 in salary, $550 interest income, $1,050 nonqualifying dividends, and $550 long-term capital gains. The Fortes' expenses for the year consist of $2,550 in investment interest expense and $810 in tax preparation fees. Assuming that the Fortes' marginal tax rate is 32 percent and they make no special elections, what is the amount of investment interest expense...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT