Answer:
The company's after-tax income is $72,000
Explanation:
The company's after-tax income is calculated by using the following formula:
Company's after-tax income = Company's pre-tax income - Income Tax
In there:
The company has pre-tax income of $120,000
Income tax = Company's pre-tax income x Tax rate = $120,000 x 40% = $48,000
Company's after-tax income = $120,000 - $48,000 = $72,000
