Determine the after tax cost of the expense


Firm A had a 15% marginal tax rate, and firm Z has a 28% marginal tax rate. Firm A owns a controlling interest in firm Z. The owners of Firm A decide to incur a $9500 deductible expense that will benefit both firms.
Compute the after tax cost of the expense assuming that Firm Z incurs the expense?

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Accounting Basics: Determine the after tax cost of the expense
Reference No:- TGS0699085

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