Bus Income Assign

7)

Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash payments related to her business.

Calculate the after-tax cost of each payment assuming she is subject to a 37 percent marginal tax rate.

Note: Do not round intermediate calculation.

a. $4,500 payment for next year's property taxes on her place of business. What is the after-tax cost?

b. $5,800 to reimburse the cost of meals at restaurants incurred by employees while traveling for the business. What is the after-tax cost?

c. $6,200 for football tickets to entertain out-of-town clients during contract negotiations. What is the after-tax cost?