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If a corporation with a 35% marginal tax rate has incremental revenues of $500, while incurring increased expenses of $150 and depreciation expense of $50,

If a corporation with a 35% marginal tax rate has incremental revenues of $500, while incurring increased expenses of $150 and depreciation expense of $50, then tax liability will increase by

$105

$122.50

$140

$157.50

$175

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