Question: ompany G , which has a 3 5 percent marginal tax rate, owns a controlling interest in Company J , which has a 1 5

ompany G, which has a 35 percent marginal tax rate, owns a controlling interest in Company J, which has a 15 percent marginal tax rate. Both companies perform engineering services. Company G is negotiating a contract to provide services for a client. Upon satisfactory completion of the services, the client will pay $92,000 cash.
Required:
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.
Compute the after-tax cash from the contract assuming that Company J is the party to the contract and provides the services to the client.
Compute the after-tax cash flow for Company G from the contract assuming that Company J is the party to the contract, but Company G actually provides the services to the client.

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