Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 23

Two companies have the following values on their annual tax returns.
a) Calculate the federal income tax for the year for each company.
b) Determine the percent of sales revenue each company will pay in federal income tax.
c) Estimate the taxes using an effective rate of 34% of the entire TI. Determine the percentage error made relative to the exact taxes in part
a).