Question
Patti and Mike are contributing $4,000 to their favorite, tax-deductible charity. This contribution will bring their total itemized deductions to $30,000. Assuming they are in
Patti and Mike are contributing $4,000 to their favorite, tax-deductible charity. This contribution will bring their total itemized deductions to $30,000. Assuming they are in the 35% marginal tax bracket and their average tax rate is 24%, how much will they save in taxes by contributing this $4,000 to charity?
| A. | $960 | |
| B. | $7,200 | |
| C. | $1,400 | |
| D. | $10,500 |
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Finance For Nonfinancial Managers
Authors: Gene Siciliano
2nd Edition
0071824367, 978-0071824361
