Basics of Engineering Economy 1st Edition by Leland Blank,Anthony Tarquin

Exercise 3

Carl read the annual report of Harrison Engineering's 3-D Imaging Division.From it he deduced that GI = $.9 million, E = $.1 million, and D = $.4 million.If the average federal tax rate is 31% and state/local tax rates total 9.8%, estimate ( a ) federal income taxes, and ( b ) the percent of GI that the federal government takes in income taxes.