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Most business transactions have tax consequences. Understanding the after-tax effects of transactions is fundamentally important. Consider the following: Before-Tax Revenue Tax Rate After-Tax Revenue $100,000

Most business transactions have tax consequences. Understanding the after-tax effects of transactions is fundamentally important. Consider the following:

Before-Tax Revenue Tax Rate After-Tax Revenue $100,000 40% ? 200,000 20% ? 135,000 35% ? Before-Tax Cost Tax Rate After-Tax Cost $25,000 40% ? 50,000 20% ? 35,000 35% ?

Calculate the after-tax revenue or after-tax cost for each of the preceding transactions.

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