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Firm A has a marginal rate of 3 5 % and Firm B has a marginal rate of 2 5 % . The two firms

Firm A has a marginal rate of

35 %

and Firm B has a marginal rate of

25 % .

The two firms have common ownership. The firms want to invest in R&D

.

Compare after

-

tax cost of the expense depending on which entity incurs the expense. Which firm should incur the expense?

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