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 $1,100,000 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 $1,060,000 of pretax profit. a. What is the after state taxes profit in the state with the 10% tax rate? After state taxes profit b. What is the after state taxes profit in the state with the 2% tax rate? After state taxes profit Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December he performed $32.000 of legal services for a client. Manny typically requires his clients to pay his bills immediately upon receipt. Assume Manny's marginal tax rate is 37 percent this year and next year, and that he can earn an after-tax rate of return of 6 percent on his investments a. What is the after-tax income if Manny sends his client the bill in December? After-tax income b. What is the after-tax income if Manny sends his client the bill in January? Use Exhibit 3.1. (Round your answer to the nearest whole dollar amount.) After-tax income Dennis is currently considering investing in municipal bonds that earn 6.15 percent interest, or in taxable bonds issued by the Coca- Cola Company that pay 8.20 percent. a. If Dennis's tax rate is 22 percent, which bond should he choose? Municipal bonds Taxable bonds b. Which bond should he choose if his tax rate is 32 percent? Municipal bonds Taxable bonds c. At what tax rate would he be indifferent between the bonds? Tax rate