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Business, 24.02.2020 22:39 Homepage10

Corporation AB’s marginal tax rate is 15 percent, and Corporation YZ’s marginal tax rate is 21 percent. If both corporations are entitled to an additional $5,800 deduction, how much tax savings will the deduction generate for each corporation? If both corporations are entitled to a $5,800 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporation’s precredit tax exceeds $5,800.)

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Corporation AB’s marginal tax rate is 15 percent, and Corporation YZ’s marginal tax rate is 21 perce...
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