acct 387 ch 3 q 6

Problem 3-54 (LO 3-4) (Algo) Hyundai is considering opening a plant in two neighboring states Option 1: One state has a corporate tax rate of 10 percent. If operated in this state, the plant is expected to generate $1,015,000 pretax profie. Option 2: The other state has a corporate tax rate of 2 percent. If operated in this state, the plant is expected to generate $960,000 of pretax profit Required: a. What is the after-state-taxes profit in the state with the 10% tax rate? b. What is the after-state-taxes profit in the state with the 2% tax rate? c. Which state should Hyundail choose? Complete this question by entering your answers in the tabs below. What is the after-state-taxes profit in the state with the 10% tax rate