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 $1,310,000 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 $1,260,000 of pretax profit.

a.What is the after state taxes profit in the state with the 10% tax rate?

R

b.What is the after state taxes profit in the state with the 2% tax rate?

e