Assuming a 21 percent marginal tax rate, compute the after-tax cost of the following business expenses: a.
Question:
Assuming a 21 percent marginal tax rate, compute the after-tax cost of the following business expenses:
a. $5,600 premium on business property and casualty insurance.
b. $1,200 fine paid for business entertainment.
c. $3,700 premium on key-person life insurance.
d. $50,000 political contribution.
e. $7,800 client meals.
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Step by Step Answer:
a Because the property and casualty insurance premium is deductible the aftertax cost is 4...View the full answer
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Related Book For 
Principles Of Taxation For Business And Investment Planning 2019 Edition
ISBN: 9781260161472
22nd Edition
Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan
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