Collin Products received notice of a $25,100 income tax deficiency plus $3,700 interest. The deficiency related...

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Collin Products received notice of a $25,100 income tax deficiency plus $3,700 interest. The deficiency related to an incorrect method of accounting for business inventory. Required: a. Compute the after-tax cost of the $3,700 interest payment assuming that Collin Products is a corporate taxpayer with a 21 percent marginal tax rate. b. Compute the after-tax cost of the $3,700 interest payment assuming that Collin Products is a sole proprietorship owned by Leslie Collin. Leslie's marginal tax rate is 37 percent. Complete this question by entering your answers in the tabs below. Required A Required B Compute the after-tax cost of the $3,700 interest payment assuming that Collin Products is a sole proprietorship owned by Leslie Collin. Leslie's marginal tax rate is 37 percent. After-tax cost Collin Products received notice of a $25,100 income tax deficiency plus $3,700 interest. The deficiency related to an incorrect method of accounting for business inventory. Required: a. Compute the after-tax cost of the $3,700 interest payment assuming that Collin Products is a corporate taxpayer with a 21 percent marginal tax rate. b. Compute the after-tax cost of the $3,700 interest payment assuming that Collin Products is a sole proprietorship owned by Leslie Collin. Leslie's marginal tax rate is 37 percent. Complete this question by entering your answers in the tabs below. Required A Required B Compute the after-tax cost of the $3,700 interest payment assuming that Collin Products is a sole proprietorship owned by Leslie Collin. Leslie's marginal tax rate is 37 percent. After-tax cost

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a For a corporate taxpayer with a 21 percent marginal tax rate the aftertax cost of i... View the full answer