Firm E operates in a jurisdiction that levies an income tax with the following rate structure: Rate Bracket 7% Income from $0 to $75,000 10% Income from $75,001 to $150,000 15% Income in excess of $150,000 Firm E has the opportunity to invest in a business project that should generate $20,000 of additional taxable income for the year. Compute the tax cost of this additional income assuming that: a. Firm E’s taxable income before considering the additional income is $130,000.
b. Firm E’s taxable income before considering the additional income is $2 million.
c. Firm E has a loss of $8,000 before considering the additional income. (Assume that the $8,000 loss may offset any taxable income in the current year.)

a. $2,000

b. $3,000

c. $1,190

Explanation:

a. Taxable income before considering additional income of $20,000 is $130,000.

Total taxable income after consideration = 130,000 + 20,000

= $150,000

Tax cost is within 10% tax bracket so cost of additional income is;

= 20,000 * 10%

= $2,000

b. a. Taxable income before considering additional income of $20,000 is $2 million.

Total taxable income after consideration = 2,000,000 + 20,000

= $2,020,000

Tax cost is within 15% tax bracket so cost of additional income is;

= 20,000 * 15%

= $3,000

c. Assuming loss can offset taxable income the taxable income would be;

= 20,000 - 3,000

= $17,000

This falls under the 7% range so the tax cost will be;

= 17,000 * 7%

= $1,190

1) Schools in the area, crime rate, and stores around.

2) Up to you, but for me it'd be pool, rooms, bathrooms, and backyard. So size

3) Label fragile things.

4) Thrift stores, yard sales, and offerup

5) Yard work, pool service, cleaning, painting every once in a while.