Question

90 million after tax with the tax rate of 26.1%

Answer 1

To calculate the pre-tax income from an after-tax amount, you can use the following formula:

\[
\text{Pre-tax income} = \frac{\text{After-tax amount}}{1 - \text{Tax rate}}
\]

In your case, you have an after-tax amount of 90 million and a tax rate of 26.1% (or 0.261 as a decimal). Plugging the numbers into the formula:

\[
\text{Pre-tax income} = \frac{90,000,000}{1 - 0.261}
\]
\[
\text{Pre-tax income} = \frac{90,000,000}{0.739}
\]
\[
\text{Pre-tax income} \approx 121,000,000
\]

So, the pre-tax income would be approximately 121 million.