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A & K Co. expects to have earnings before taxes of $250,000 to $300,000. The company's marginal tax rate is 39% and its average tax

A & K Co. expects to have earnings before taxes of $250,000 to $300,000. The company's marginal tax rate is 39% and its average tax rate about 33%. For every additional dollar of interest income, A & K's taxes will

A. increase by 39 cents

B. fall by 39 cents

C. be uneffected

D. fall by about 33 cents

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