Option $1$: One state has a corporate tax rate of $10$ percent. If operated in this state, the plant is expected to generate $$1,275,000$ 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 $$1,200,000$ of pretax profit.

Required:

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?

c$.$ Which state should Hyundai choose?

Complete this question by entering your answers in the tabs below.

What is the after$-$state$-$taxes profit in the state with the $10\%$ tax rate?

After$-$state$-$taxes profit