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Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship.In late December, he performed $28,000 of legal services for a client.

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Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship.In late December, he performed $28,000 of legal services for a client. Hank typically requires his clients to pay his bills immediately upon receipt. Assume his marginal tax rate is 32 percent this year and will be 37 percent next year, and that he can earn an after-tax rate of return of investments. 11 percent on his a. What is the after-tax income if Hank sends his client the bill in December? tax b. What is the after-tax income if Hank sends his client the bill in January? Use Exhibit 31 (Round your answer to the nearest whble dollar amount.) tax Hyundai is considering opening a plant in two neighboring states. Option 1: One state has a corporate tax rate of 10 percent If operated in this state, the plant is expected to generate $965,000 pretax profit Option 2: The other state has a corporate tax rate of 2 percent If operated in this state, the plant is expected to generate $920,000 of pretax profit a. what is the after state taxes profit in the state with the 10% tax rate? b, what is the after state taxes profit in the state with the 2% tax rate? After state taxes profit Komiko Tanaka invests $19,000 in LymaBean, Inc. LymaBean does not pay any dividends. Komiko projects that her investment will generate a 10 percent before-tax rate of return. She plans to invest for the long term. a. How much cash will Komiko retain, after-taxes, if she holds the investment for 5 years and then she sells it when the long-term capital gains rate is 15 percent? (Do not round your intermediate colculations. Round your final answer to the nearest whole dollar amount.) b. What is Komiko's after-tax rate of return on her investment in part (a)? (Do not round your intermediate calculations. Round your percentage answer to 2 decimal places) ter-tax rate of return percent

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