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ASSUME THE PRE-TAX PROFIT OF $50,000 HAS BEEN EARNED BY

ASSUME THE PRE-TAX PROFIT OF $50,000 HAS BEEN EARNED BY

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Author: Joyce Buda
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Assume the pre-tax profit of $50,000 has been earned by a business, and the owner/proprietorwants to withdraw all of the after-tax profit for personal use. Assume the tax rate for a C corporationis 34%, while the rate for a person is 27%. The after-tax earnings available under the corporate andproprietorship forms of business are:a. for a corporation, $24,090; for a proprietorship, $36,500.b. for a corporation, $25,125; for a proprietorship, $37,500.c. for either a corporation or a proprietorship, $36,500.d. for either a corporation or a proprietorship, $24,090.______3.a.b.c.d.One of the best ways to reduce agency conflict is byinstituting severe penalties for bad decisions.hiring outside monitors to keep track of the manager’s decisions.designing an effective compensation package.having managers report to the board of directors.Sybarix Group prepared its financial statements for 2015 based on the information below.The company had cash of $1,206, inventory of $14,290, and accounts receivablesof $6,589. The company’s net fixed assets were $42,412, and other assets were $2,822.It had accounts payable of $11,580, notes payable of $2,886, common stock of $21,800,and retained earnings of $14,368. How much long-term debt did the firm have?$12,314$16,685$18,334$22,3421______4.The Millennium Chemical Corporation announced that for the period ending December 31,2015, it earned income after taxes of $2,768,028 on revenues of $13,144,680. The company’s costs(excluding depreciation and amortization) amounted to 61% of revenues, and Centennialhad interest expenses of $392,168. What is the firm’s depreciation and amortization expense ifits tax rate was 30 percent?a. $ 540,275b. $ 486,290c. $ 958,083d. $ 779,931The information below should be used for question 52014 and 2015 Balance Sheets for Nabors, Inc($ millions)20143103,2505,27510,960

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