Lynette is the CEO of publicly traded TTT Corporation and earns a salary of $200,000 in the current year. What is TTT Corporation’s after-tax cost of paying Lynette’s salary excluding FICA taxes?
Answer:-$130000
Assume ttt corporation marginal tax rate =35%
Before tax cost of salary =200000
After tax salary = salary*(1-tax rate)
=200000*(1-35%)=200000*65%=130000
Lynette is the CEO of publicly traded TTT Corporation and earns a salary of $200,000 in the current year. What is TTT Co...
Lynette is the CEO of publicly traded TTT Corporation and earns a salary of $200,000 in the current year. What is TTT Corporation's after-tax cost of paying Lynette's salary excluding FICA taxes? nts After-tax cost
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