Assume the following:

- You own and operate a Sole Proprietorship business in Ontario

- Assume personal marginal income tax rate is35%for thelast$10,000of income you earned

- The corporate income tax rate is26.5%in Ontario

- You decide to spend$10,000to hire a contractor to work in your business

Knowing that salary expenses are 100%tax deductible,what would be the actual "after tax"costto your company for using thisresource?