Corporation AB's marginal tax rate is 15 percent, and Corporation YZ's marginal tax rate is 21 percent.

Required:

1. If both corporations are entitled to an additional $7,000 deduction, how much tax savings will the deduction generate for each corporation?
2. If both corporations are entitled to a $7,000 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporation's precredit tax exceeds $7,000.

If both corporations are entitled to a $7,000 tax credit, how much tax savings will the credit generate for each corporation?

(Assume that each corporation's precredit tax exceeds $7,000.)

Problem: Module 8 Textbook Problem 6 Learning Objectives: - 8-4 Compute the regular tax on corporate taxable income - 8-5 Explain the effect of tax credits on corporate tax liability Corporation AB's marginal tax rate is 15 percent, and Corporation YZ's marginal tax rate is 21 percent. Required: a. If both corporations are entitled to an additional $7,000 deduction, how much tax savings will the deduction generate for each corporation? b. If both corporations are entitled to a $7,000 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporation's precredit tax exceeds $7,000.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. If both corporations are entitled to a $7,000 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporation's precredit tax exceeds $7,000.) Problem: Module 8 Textbook Problem 6 Learning Objectives: - 8-4 Compute the regular tax on corporate taxable income - 8-5 Explain the effect of tax credits on corporate tax liability Corporation AB's marginal tax rate is 15 percent, and Corporation YZ's marginal tax rate is 21 percent. Required: a. If both corporations are entitled to an additional $7,000 deduction, how much tax savings will the deduction generate for each corporation? b. If both corporations are entitled to a $7,000 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporation's precredit tax exceeds $7,000.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. If both corporations are entitled to an additional $7,000 deduction, how much tax savings will the deduction generate for each corporation