Hyundai is considering opening a plant in two neighboring states.

option 1: one state has a corporate tax rate of 10 percent. if operating in this state, the plant is expected to generate $1000 pretax profit. option 2: the other state has a corporate tax rate of 2 percent. if operating in the state, the plant is expected to generate $930,000 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?