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Problem 2-8 Corporate Taxes (LG2-3) Everybodys Fitnesss 2021 income statement is reported below (in millions of dollars) (U

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Answer #1

Firm’s 2021 Tax Liability

Firm’s 2021 Tax Liability = Earnings before tax x Corporate tax rate

= EBT x Tax rate

= $223 Million x 21%

= $46.83 Million

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