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For ABC Company, you are given: last year net income = $80,000, income tax rate was...

For ABC Company, you are given: last year net income = $80,000, income tax rate was 20%, find income before tax...

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Answer #1

Calculation of income before income tax:

Net income after income tax = $80,000

Tax rate = 20%

Net income after Income tax is $80000 (80%), which is equal to 80% and tax rate is 20%

Income before income tax = $80,000/80%

Income before tax = $100,000.

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