Question & Answer: Christopher is a cash-method, calendar-year taxpayer, and he made the following cash payments r…..

Christopher is a cash-method, calendar-year taxpayer, and he made the following cash payments related to his business this year.

Calculate the after-tax cost of each payment assuming he has a 30 percent marginal tax rate. (Do not round intermediate calculations and round your final answer to the nearest dollar amount.)

$1,380 fine for speeding while traveling to a client meeting.

$415 of interest on a short-term loan incurred in September and repaid in November. Half of the loan proceeds were used immediately to pay salaries and the other half was invested in municipal bonds until November.

c.	$1,085 for office supplies in May of this year. He used half of the supplies this year and he will use the remaining half by February of next year.

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