Question

A company’s before tax operating income is $1,000.
With a 35% tax rate, what is the company’s after-tax operating income?

Answer 1

Answer:

after-tax operating income = $650

Explanation:

given data

before tax operating income = $1,000

tax rate = 35%

to find out

after-tax operating income

solution

we get here after-tax operating income that is express as

after-tax operating income = before tax operating income ( 1 - tax rate  ) ...............1

put here value we get

after-tax operating income = $1000 × ( 1 - 35%  )

after-tax operating income = $1000 × ( 1 - 0.35  )

after-tax operating income = $1000 × 0.65

after-tax operating income = $650