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Firm M and Firm N are related parties. For the past several years, Firm M's marginal tax rate has been 30 percent, and Firm N's

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Firm M and Firm N are related parties. For the past several years, Firm M's marginal tax rate has been 30 percent, and Firm N's marginal tax rate has been 21 percent. Firm M is evaluating a transaction that will generate $10,000 income in each of the next three years Firm M could restructure the transaction so that the income would be earned by Firm N. Because of the restructuring the annual Income would decrease to $9,000. Required: a. What is the annual after-tax profit if M continues to engage in the transaction? b. What is the annual after-tax profit if Mrestructures and engages in the transaction? c. Should Firm M restructure the transaction? C Complete this question by entering your answers in the tabs below. Required A Required B Required What is the annual after-tax profit if M continues to engage in the transaction? Annual alter-lax profit

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