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Crisp Company structured an income-generating transaction so that the $525,000 income and cash flow shifted to MCX, a company owned by the same people that
Crisp Company structured an income-generating transaction so that the $525,000 income and cash flow shifted to MCX, a company owned by the same people that own Crisp Company.
If Crisp's marginal tax rate is 35% and MCX's tax rate is 20%, compute the tax savings from the income shift.
A.) $105,000 | ||
B.) $183,750 | ||
C.) $78,750 | ||
D.) $131,250 |
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