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Collin Products received notice of a $21,800 income tax deficiency plus $5,400 interest. The deficiency...

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Accounting

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Collin Products received notice of a $21,800 income tax deficiency plus $5,400 interest. The deficiency related to an incorrect method of accounting for business inventory. Required: a. Compute the after-tax cost of the $5.400 interest payment assuming that Collin Products is a corporate taxpayer with a 21 percent marginal tax rate. b. Compute the after-tax cost of the $5,400 interest payment assuming that Collin Products is a sole proprietorship owned by Lesile. Collin. Leslie's marginal tax rate is 37 percent. Complete this question by entering your answers in the tabs below. Compute the after-tax cost of the $5,400 interest payment assuming that Collin Products is a corporate taxpayer with a 21 percent marginal tax rate. Compute the after-tax cost of the $5,400 interest payment assuming that Collin Products is a sole proprietorship owned by Leslie Collin. Leslie's marginal tax rate is 37 percent

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