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Corporation AB's marginal tax rate is 10 percent, and Corporation YZ's marginal tax rate is 21 percent. Required: a. If both corporations are entitled to
Corporation AB's marginal tax rate is 10 percent, and Corporation YZ's marginal tax rate is 21 percent. Required: a. If both corporations are entitled to an additional $6,100 deduction, how much tax savings will the deduction generate for each corporation? b. both corporations are entitled to a $6100 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporation's precredit tax exceeds $6,100)
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