2. If taxable income increases to $28,890,000 and the tax rate decreases to 7%, what is the expected change in taxes? O-407,700 O 540,000 672,300 O-672,300 32 3. If taxable income increases to $28,890,000 and the tax rate decreases to 5%, what is the expected change in taxes? 0-1,080,000 O 1,080,000 985,500 O-985,500 B A 1 Taxes Owed under each scenario 2. 3 Income Scenarios Taxable income 4 Income Increases by 7% 28,890,000 5 Income Remains the Same 27,000,000 6 Income Decreases by 7% 25,110,000 7 8 9 The change in taxes based on scenario above, 10 11 12 Income Scenarios 13 Income increases by 7% 14 Income Remains the Same 15 Income Decreases by 7% 16 17 Probability of the scenario occurring Taxable income 28,890,000 27,000,000 25, 110,000