Find the cost of the CP. You invested $1,000,000 at 3.75 percent interest for 90 days. No service fee.

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In this problem, we need to find the cost of the commercial paper (CP).

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Value Of Issue	Percent	Commission expenses	Other Expenses	Total Selling Expenses	Net Proceeds	Number Of Shares	Selling Cost per Share
860,000	7.0%	a.	45,980	b.	c.	27,000	d.

Value Of Issue	Percent	Commission expenses	Other Expenses	Total Selling Expenses	Net Proceeds	Number Of Shares	Selling Cost per Share
$1,200,000	5.0%	a.	$38,600	b.	c.	35,000	d.

business math

Federal Corporate Income Tax

Over___	But not over___	Tax is:	Of the amount over	-
$-	$50,000	15%	$	-
50,000	75,000	7,500+25%	50,000
75,000	100,000	13,750+34%	75,000
100,000	335,000	22,250+39%	100,000
335,000	10,000,000	113,900+34%	335,000
10,000,000	15,000,000	3,400,000+35%	10,000,000
15,000,000	18,333,333	5,150,000+38%	15,000,000
18,333,333	-	5,150,000+38%	-

Remember that: Taxable Income = Annual Gross Income - Deductions

Use Federal Corporate Income Tax above to find taxable income and total tax.

Annual Gross Income	Deductions	Taxable Income	Total Tax
341,900	99,812	a.	b.

business math

Federal Corporate Income Tax

Over___	But not over___	Tax is:	Of the amount over	-
$-	$50,000	15%	$	-
50,000	75,000	7,500+25%	50,000
75,000	100,000	13,750+34%	75,000
100,000	335,000	22,250+39%	100,000
335,000	10,000,000	113,900+34%	335,000
10,000,000	15,000,000	3,400,000+35%	10,000,000
15,000,000	18,333,333	5,150,000+38%	15,000,000
18,333,333	-	5,150,000+38%	-

Remember that: Taxable Income = Annual Gross Income - Deductions

Use Federal Corporate Income Tax above to find taxable income and total tax.

Annual Gross Income	Deductions	Taxable Income	Total Tax
1,800,529	432,877	a.	b.

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Value Of Issue	Percent	Commission expenses	Other Expenses	Total Selling Expenses	Net Proceeds	Number Of Shares	Selling Cost per Share
860,000	7.0%	a.	45,980	b.	c.	27,000	d.

Value Of Issue	Percent	Commission expenses	Other Expenses	Total Selling Expenses	Net Proceeds	Number Of Shares	Selling Cost per Share
$1,200,000	5.0%	a.	$38,600	b.	c.	35,000	d.

business math

Federal Corporate Income Tax

Over___	But not over___	Tax is:	Of the amount over	-
$-	$50,000	15%	$	-
50,000	75,000	7,500+25%	50,000
75,000	100,000	13,750+34%	75,000
100,000	335,000	22,250+39%	100,000
335,000	10,000,000	113,900+34%	335,000
10,000,000	15,000,000	3,400,000+35%	10,000,000
15,000,000	18,333,333	5,150,000+38%	15,000,000
18,333,333	-	5,150,000+38%	-

Remember that: Taxable Income = Annual Gross Income - Deductions

Use Federal Corporate Income Tax above to find taxable income and total tax.

Annual Gross Income	Deductions	Taxable Income	Total Tax
341,900	99,812	a.	b.

business math

Federal Corporate Income Tax

Over___	But not over___	Tax is:	Of the amount over	-
$-	$50,000	15%	$	-
50,000	75,000	7,500+25%	50,000
75,000	100,000	13,750+34%	75,000
100,000	335,000	22,250+39%	100,000
335,000	10,000,000	113,900+34%	335,000
10,000,000	15,000,000	3,400,000+35%	10,000,000
15,000,000	18,333,333	5,150,000+38%	15,000,000
18,333,333	-	5,150,000+38%	-

Remember that: Taxable Income = Annual Gross Income - Deductions

Use Federal Corporate Income Tax above to find taxable income and total tax.

Annual Gross Income	Deductions	Taxable Income	Total Tax
1,800,529	432,877	a.	b.

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Find the cost of the CP. You invested $1,000,000 at 3.75 percent interest for 90 days. No service fee.

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