What is the tax bill for each firm

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Reference no: EM131956489

Corporation A firm has $89,500 in taxable income, and Corporation B firm has $8,950,000 in taxable income.

a) What is the tax bill for each firm?

b) Suppose both firms have identified a new project that will increase taxable income by $10,000. How much in additional taxes will each firm pay? Why is this amount the same?

Reference no: EM131956489

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