Question
In 2021, Alberta-based Corporation Growth has$81,000in taxable income, and Alberta-based Corporation Income has$9,000,000 in taxable income. Use the tax rates from Table 2.7 . a.
In 2021, Alberta-based Corporation Growth has$81,000in taxable income, and Alberta-based Corporation Income has$9,000,000 in taxable income. Use the tax rates fromTable 2.7.
a.What is the tax bill for each? (Omit $ sign in your response.)
| Firms | Tax Bill |
| Alberta-based Corporation Growth | $ |
| Alberta-based Corporation Income | $ |
b. Suppose both firms have identified a new project that will increase taxable income by $12,000. How much additional taxes will each firm pay? (Omit $ sign in your response.)
| Firms | Additional Taxes |
| Alberta-based Corporation Growth | $ |
| Alberta-based Corporation Income | $ |
c.Is this amount the same?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
