Corporation ABs marginal tax rate is 10 percent, and Corporation YZs marginal tax rate is 21 percent.

Required:

1. If both corporations are entitled to an additional $5,400 deduction, how much tax savings will the deduction generate for each corporation?
2. If both corporations are entitled to a $5,400 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporations precredit tax exceeds $5,400.)