Question

1. A company earns before-tax profits of F100,000. It is committed to making a donation to theRed-Cross 10% of its after-tax profits. The central government levies corporate tax of 50% ofprofits after deducting charitable donations and any local taxes. The company must alsopay local taxes of 10% of its profit less the deduction to the Red-Cross. Compute how muchcompany pays in corporate tax, local taxes and as a donation to the Red-Cross, usingtheCramer's rule.​

Answer 1

Answer:

40,000 he pay for tax

and he saves 60,000