question archive Collin Products received notice of a $25,100 income tax deficiency plus $3,700 interest
Collin Products received notice of a $25,100 income tax deficiency plus $3,700 interest
Subject:AccountingPrice: Bought3
Collin Products received notice of a $25,100 income tax deficiency plus $3,700 interest. The deficiency related to an incorrect method of accounting for business inventory.
Compute the after-tax cost of the $3,700 interest payment assuming that Collin Products is a sole proprietorship owned by Leslie Collin. Leslie's marginal tax rate on her Form 1040 is 37 percent.
