Financial management chapter 6

Tanya O'Reilly has $60,000 of taxable income. The tax table is as follows: Toxable income Tax Rate $50,000 10% 20 30% Required: 1. What is her total tax liability? 2. What is her average tax rate? The Hopedale Inn invested in a ten-acre plot of land for future development twenty years ago. It purchased this land for $100,000 and it could be sold today for $500,000. The Hopedale Inn's average and incremental tax rates are 22 percent and 30 percent, respectively. The Inn is considering building a new lodging facility on this land. Required: What is the opportunity cost of this investment