Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 6

Carl read the annual report of Harrison Engineering's 3-D Imaging Division. From it he deduced that sales revenue generated a GI of $4.9 million. Other information was E = $2.1 million, and D = $1.4 million. If the average federal tax rate was 31% and state/local tax rates totaled 9.8%, estimate ( a ) deral income taxes, and ( b ) e percent of sales revenue that the federal government required in income taxes.