no need to explain thank you.

Pepper Company, which has a 25% marginal tax rate, must choose between two alternative transactions. Transaction 1 requires a P20,400 cash outlay that is a deductible current expense, Transaction 2 requires a P15,000 cash outlay that is a nondeductible current expense. Which transaction has the lesser after-tax cost to Pepper? Answer: Mr. and Mrs. Boln earn P63,000 annual income and pay 20% in state and federal income tax. If tax rates increase so that the couple's annual rate increases to 25%, how much additional income must they earn to maintain their after-tax standard of living