Riley Motorcar Corp. has a tax loss in the current period of $10 million. When added to prior tax losses, Riley has a NOL carryforward of $15 million. The top statutory tax rate of the foreseeable future is 21%. Assume an after-tax discount rate of 10% and future taxable income per annum of $4 million. 

Part A-What is Riley's marginal tax rate? 

Part B - What is Riley's marginal tax rate if the top statutory tax rate is expected to increase to 40% within the next 2 years?

Answer rating: 100% (QA)

Answer Given data 19 Tax loss in Current period 10 million N... View the full answer