Combined state and federal tax rate

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Reference no: EM13838687

Revenue from sales = $5,000,000, cost of production = $2,500,000, depreciation = $100,000, and the combined state and federal tax rate = 40%. The tax owed =

a. $960,000

b. $1,000,000

c. $2,400,000

d. $2,500,000

Reference no: EM13838687

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