Pratt Company structured an income-generating transaction so that the $750,000 income and cash flow shifted to Pratt's wholly owned subsidiary, PTB Company. If Pratt's marginal tax rate is 21%, and PTB's tax rate is 10%, compute the tax savings from the income shift.
A. $75,000
B. $78,750
C. $82,500
D. $157,500
Answer: C
You might also like to view...
A store classifying its offerings so that tennis shoes, tennis rackets, and tennis tops and shorts are located together utilizes a market segment product grouping
Indicate whether the statement is true or false
A seven activity project has the activity durations (in weeks) and costs shown in the table. The project manager has an overall budget of $20,000, what is the fastest completion time possible?
Activity Predecessor Normal Duration Normal Cost Crash Duration Crash Cost A -- 7 $2000 5 $3000 B -- 8 $1500 6 $2000 C A 12 $2500 10 $2900 D B 13 $3000 10 $4200 E B 15 $4000 12 $5500 F C, E 10 $3200 8 $4000 G D 7 $1800 6 $2200 A) 29 weeks B) 28 weeks C) 27 weeks D) 26 weeks
In an article by Amis, Slack, and Hinings (2004), evidence was presented showing that effective organization change begins with ______.
A. a charismatic leader B. sudden bursts of a radical nature C. muddled messages of the effect of changes D. none of these
A seller who has two outstanding counteroffers risks multiple acceptances
Indicate whether the statement is true or false