me3232-F10-hw7 - ME 3232 Homework #7, due 11/5/10 1. Tiger...

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ME 3232 Homework #7, due 11/5/10 1. Tiger Construction company had a gross income of $20,000,000 in tax year 1, $3,000,000 in salaries, $4,000,000 in wages, $800,000 in CCA, a loan principal payment of $200,000, and a loan interest payment of $210,000. Determine the net income of the company in tax year 1 if Tiger’s tax rate is 40%. 2. Buffalo Ecology Corporation is an Ontario based company which expects to generate a taxable income of $250,000 from its regular business in the current tax year. The company is considering a new venture: cleaning up oil spills made by fishing boats in lakes. This new venture is expected to generate additional taxable income of $150,000. Do the following assuming Buffalo Ecology is eligible for the small business deduction. (Tax rates: fed small bus. 12%, fed 21%, prov. small bus. 5%, prov. 15.5%) (a) Determine the firm’s marginal tax rates before and after the venture. (b)
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This note was uploaded on 11/19/2010 for the course ME 3232 taught by Professor Lyon during the Fall '10 term at University of New Brunswick.

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me3232-F10-hw7 - ME 3232 Homework #7, due 11/5/10 1. Tiger...

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