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Chapter 3 Financial Planning Exercise 4 Effect of tax credit vs. tax exemption By defining after-tax income, demonstrate the differences resulting from a $2,000 tax

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Chapter 3 Financial Planning Exercise 4 Effect of tax credit vs. tax exemption By defining after-tax income, demonstrate the differences resulting from a $2,000 tax credit versus a $2,000 tax deduction for a single taxpayer in the 25% tax bracket with $41,000 of pre-tax income. Round your answers to two decimal places. (Use Exhibit 3.3.) Deduction $ Credit

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