Exam (elaborations)
TAX 4001 midterm Exam Questions with 100% Correct Answers
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1. Jason engaged in a transaction that generated $50,000 of cash. Assuming Jason's marginal tax rate is 40% and only $40,000 of the income is taxable, what is Jason's after tax cashflow? $20,000 $40,000 $34,000 $24,000 - ANSWER $34,000 (40,000*.4) = 16,000 50,000 - 16,000 = 34,000
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