Assume Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash payments related to her business.
1. Calculate the after-tax cost of each payment assuming she has a 37 percent marginal tax rate. (Do not round intermediate calculation.)
a. $2,700 payment for next year's property taxes on her place of business.
b. $2,200 to reimburse the cost of meals incurred by employees while traveling for the business.
c. $2,600 for football tickets to entertain out-of-town clients during contract negotiations.
d. $1,200 contribution to the mayor's re-election campaign.
Explanation:After- tax cost of debt =
Cost of debt x (1- tax rate)
Plugging the values,
a. $2700x( 1- 0.37) = $1701
b. $2200x( 1-0.37) = $1386
c. $2600x(1-0.37) = $1638
d. $1200x (1-0.37) = $756
i this its 7 years i hope this
say it in english maybe we can