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Benjamin is considering making a $50,000 investment in a venture that its promoter promises will generate immediate tax benefits for him. Benjamin, who does not
Benjamin is considering making a $50,000 investment in a venture that its promoter promises will generate immediate tax benefits for him. Benjamin, who does not anticipate itemizing his deductions, is in the 30% marginal tax bracket. If the investment is of a type that produces a tax credit of 40% of the amount of the expenditure, by how much will Benjamin's tax liability decline because of the investment
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