A motor company plans to launch a new type of SUV. Advertising for the new product will be heavy and will cost the company $15 million, although the company expects general revenues of $280 million next year from sources other than sales of the new SUV. If the company has a corporate tax-rate of 30% on its pretax income, what effect will the advertising for the new SUV have on its taxes?

a.

It will increase taxes by $4.5 million.

b.

It will reduce taxes by $15 million.

c.

It will have no effect on taxes.

d.

It will reduce taxes by $4.5 million.