Question 9 (2 points) Olga, Inc. sold an asset with a $78,300 adjusted tax basis for $100,000. The purchaser paid $30,000 in cash and assumed Olga's $70,000 mortgage on the asse Compute Olga's net cash flow from the sale assuming a 21% tax rate. $17,143 $23,700 $30,000 $25,443 Previous Page Next Page Page 9 of 5 Question 11 (2 points) Eastlawn Inc.'s taxable income is computed as follows: Book income before tax $2,400,000 Net permanent differences 500,000 Net temporary differences (200,000) Taxable income $2,700,000 Using a 21% rate, what are the amounts of Eastlawn's tax expense per books and tax payable? Tax expense per books of $504,000 and tax payable of $462,000 Tax expense per books of $504,000 and tax payable of $567,000 Tax expense per books of $609,000 and tax payable of $462,000 Tax expense per books of $609,000 and tax payable of $567,000 Question 13 (2 points) Karl is considering an investment of $10,000 in City of Kalamazoo bonds that pay 6% interest. Alternatively, with no difference in risk, Karl can invest the $10,000 in corporate bonds recently issued by Replay, Inc. that pay 8% interest. What is the marginal tax rate that would make Karl indifferent between the two investments? 35.0% 33.3% 25.0% 22.2% Previous Page Next Page Page 13 of 5 Question 14 (2 points) Mr. and Mrs. Ucher's marginal tax rate for the 2020 tax year is 24%. They plan to file a joint tax return and have potential itemized deductions totaling $26,000. What is the amount of their incremental tax savings if they claim their itemized deductions rather than claim their standard deduction? $0 $952 $576 $288 $384 Previous Page Next Page Page 14 of 50 Question 9 (2 points) Olga, Inc. sold an asset with a $78,300 adjusted tax basis for $100,000. The purchaser paid $30,000 in cash and assumed Olga's $70,000 mortgage on the asse Compute Olga's net cash flow from the sale assuming a 21% tax rate. $17,143 $23,700 $30,000 $25,443 Previous Page Next Page Page 9 of 5 Question 11 (2 points) Eastlawn Inc.'s taxable income is computed as follows: Book income before tax $2,400,000 Net permanent differences 500,000 Net temporary differences (200,000) Taxable income $2,700,000 Using a 21% rate, what are the amounts of Eastlawn's tax expense per books and tax payable? Tax expense per books of $504,000 and tax payable of $462,000 Tax expense per books of $504,000 and tax payable of $567,000 Tax expense per books of $609,000 and tax payable of $462,000 Tax expense per books of $609,000 and tax payable of $567,000 Question 13 (2 points) Karl is considering an investment of $10,000 in City of Kalamazoo bonds that pay 6% interest. Alternatively, with no difference in risk, Karl can invest the $10,000 in corporate bonds recently issued by Replay, Inc. that pay 8% interest. What is the marginal tax rate that would make Karl indifferent between the two investments? 35.0% 33.3% 25.0% 22.2% Previous Page Next Page Page 13 of 5 Question 14 (2 points) Mr. and Mrs. Ucher's marginal tax rate for the 2020 tax year is 24%. They plan to file a joint tax return and have potential itemized deductions totaling $26,000. What is the amount of their incremental tax savings if they claim their itemized deductions rather than claim their standard deduction? $0 $952 $576 $288 $384 Previous Page Next Page Page 14 of 50