Middlefield motors is evaluating project a, which would require the purchase of a piece of equipment for 330,000 dollars. during year 1, project a is expected to have relevant revenue of 190,000 dollars, relevant costs of 61,000 dollars, and some depreciation. middlefield motors would need to borrow 330,000 dollars for the equipment and would need to make an interest payment of 16,500 dollars to the bank in year 1. relevant net income for project a in year 1 is expected to be 13,000 dollars and operating cash flows for project a in year 1 are expected to be 115,000 dollars. straight-line depreciation would be used.

what is the tax rate expected to be in year 1?

answer as a rate in decimal format so that 12.34% would be entered as.1234 and 0.98% would be entered as 0098 number red royal media is evaluating a project that would require the purchase of a piece of equipment for 780,000 dollars today. during year 1, the project is expected to have relevant revenue of 643,600 dollars, relevant costs of 351,100 dollars, and relevant depreciation of 99,400 dollars. red royal media would need to borrow 780,000 today for the equipment and would need to make an interest payment of 35,500 dollars to the bank in 1 year. relevant operating cash flow for the project in year 1 is expected to be 170,268 dollars.

what is the tax rate expected to be in year 1?

answer as a rate in decimal format so that 12.34% would be entered as.1234 and 0.98% would be entered as .0098 number

Selected information about income statement accounts for the reed company is presented below (the company's fiscal year ends on december 31): 2018 2017sales $ 4,400,000 $ 3,500,000cost of goods sold 2,860,000 2,000,000administrative expenses 800,000 675,000selling expenses 360,000 312,000interest revenue 150,000 140,000interest expense 200,000 200,000loss on sale of assets of discontinued component 50,000 —on july 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by gaap. the assets of the component were sold on september 30, 2018, for $50,000 less than their book value. results of operations for the component (included in the above account balances) were as follows: 1/1/18-9/30/18 2017 sales $ 400,000 $ 500,000 cost of goods sold (290,000 ) (320,000 )administrative expenses (50,000 ) (40,000 )selling expenses (20,000 ) (30,000 )operating income before taxes $ 40,000 $ 110,000 in addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: a fire caused $50,000 in uninsured damages to the main office building. the fire was considered to be an infrequent but not unusual event. inventory that had cost $40,000 had become obsolete because a competitor introduced a better product. the inventory was sold as scrap for $5,000.income taxes have not yet been recorded. required: prepare a multiple-step income statement for the reed company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and eps disclosures assuming 300,000 shares of common stock. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)