Corporation R and Corporation T conduct business in Jurisdiction Q. The corporations€™ financial records for last year show the following.

Jurisdiction Q decided to enact a tax on corporations conducting business within its jurisdiction but has not decided on the tax base. Identify four different tax bases suggested by the corporations€™ financial records and discuss each base in terms of horizontal equity.

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Corporation R $5,000,000 Corporation T $5,000,000 Gross receipts from sales Cost of goods sold Gross profit Annual operating expenses Charitable contributions Net profit $1,800,000 (1,000,000) $1,330,000 (400,000) 800,000) 800,000 S 630,000