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drek231 [11]
3 years ago
6

The local printing company purchases a new copy machine that reduces the cost of making a color copy by ten cents a copy. It nor

mally makes 50,000 color copies a year and is in the 28 percent income tax bracket. The annual taxes on this purchase will be ___________.A) $3,600. B) $5,000. C) $6,400. D) $1,400.
Business
1 answer:
padilas [110]3 years ago
8 0

Answer:

D. $1400

Explanation:

Given that

Tax rate = 28%

New purchase reduces cost by 10 cents

Copier makes $50000

Thus,

Annual taxes on purchase = (50000/10) × 28%

= 5000 × 28%

= 5000 × 0.28

= $1400

Therefore, Annual taxes on purchase is $1400.

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