Company G, which has a 35 percent marginal tax rate, owns a controlling interest in Company J, which has a 15 percent marginal tax rate. Both companies perform engineering services. Company G is negotiating a contract to provide services for a client. Upon satisfactory completion of the services, the client will pay $104,000 cash.

1. Compute the after-tax cash from the contract assuming that Company G is the party to the contract and provides the services to the client.
2. Compute the after-tax cash from the contract assuming that Company J is the party to the contract and provides the services to the client.
3. Compute the after-tax cash from the contract assuming that Company J is the party to the contract, but Company G actually provides the services to the client.

Company G, which has a 35 percent marginal tax rate, owns a controlling interest in Company J, which has a 15 percent marginal tax rate. Both companies perform engineering services. Company G is negotiating a contract to provide services for a client. Upon satisfactory completion of the services, the client will pay $104,000 cash. a. Compute the after-tax cash from the contract assuming that Company G is the party to the contract and provides the services to the client. b. Compute the after-tax cash from the contract assuming that Company J is the party to the contract and provides the services to the client. c. Compute the after-tax cash from the contract assuming that Company J is the party to the contract, but Company G actually provides the services to the client. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the after-tax cash from the contract assuming that Company J is the party provides the services to the client. (Negative amount should be indicated by minus After-tax cash flow for Company G $ 36,400