Brief Exercise 5-3 The Impact of Income Taxes

Decisions frequently have income tax implications for a business. The following table includes data about mutually exclusive income tax scenarios:

Required:

Calculate the missing values for each of the following transactions.

Before-Tax Revenue	Tax Rate	After-Tax Revenue
$	30%	$63,000
$78,000	%	58,500
125,000	20%	$

Before-Tax Cost	Tax Rate	After-Tax Cost
$60,000	15%	$
$	25%	$60,000
96,000	%	62,400