Revenue from sales 5000000 cost of production 2500000
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
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