The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 399 Weeks Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
C.F. Jordon Construction Services has operated for the last 26 years in a northern U.S. state where the state income tax on corporate revenue is 6% per year. C.F. Jordon pays an average federal tax of 23% and reports taxable income of $7 million. Because of pressing labor cost increases, the president wants to move to another state to reduce the
total tax burden. The new state may have to be willing to offer tax allowances or an interest-free grant for the first couple of years in order to attract the company. You are an engineer with the company and are asked to do the following.
(a) Determine the effective tax rate for C.F. Jordon.
(b) Estimate the state tax rate that would be necessary to reduce the overall effective tax rate
by 10% per year.
(c) Determine what the new state would have to do financially for C.F. Jordon to move there and to reduce its effective tax rate to 22% per year.
Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll