3-32, 3-43 - (a) DPGR Purple = $1,200 Scarlet = $1,600...

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ACCT 467 Kristen Jack Chp 3 – Probs 32, 43 1/29/2012 3-32 Taxable Income = 11,000,000 Tax Savings from max DPAD = 11,000,000 * .09 * 35% = $346,500 3-43 Purple: Cost = 800, Sold = 1,200 Scarlet: Cost = 1,200, Expense = 300, Sold = 1,600
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Unformatted text preview: (a) DPGR Purple = $1,200 Scarlet = $1,600 (300/ (1,200 + 300) = 20%) (b) QPAI Purple = 1,200 800 Scarlet has none (no production) = $400 (c) DPAD Purple = 9% * 400 Scarlet = (1,600 1,200) * 9% = $36 = $36...
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