Company G, which has a 30% marginal tax rate, owns a controlling interest in company J, which has a 12% marginal tax rate. Both companies perform engineering services. Company G is negotiating a contract to provide services for a client. Upon satisfactory completion of services, the client will pay $85,000 cash. Compute the after-tax cash from the contract assuming that Company G is the party to the contract and provides the services to the client?

Answer rating: 100% (QA)

Company G marginal tax rate 30 Company J margi... View the full answer