Question

Return to questi rt 1 of 4 Required information [The following information applies to the questions displayed below.] Assume Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash payments related to her business. Ints Calculate the after-tax cost of each payment assuming she is subject to a 37 percent marginal tax rate. (Do not round intermediate calculation.) a. $2,000 payment for next year's property taxes on her place of business. & Answer is complete but not entirely correct. After-tax cost $ 1.500

Answer 1

(a) $ 2000 x (1 -0.3+) = $2000 x 0.63 - $ 1260 all allowable under the 12 - month rele). b) $800 x [1-(0150X0:37)] = $ 800 x [1 -0.185) = $ 800 x 0.815 - $652 I only half of the case of meals is deductible)