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Required: Corporation AB s marginal tax rate is 1 0 percent, and Corporation YZ s marginal tax rate is 2 1 percent. a: If both

Required:
Corporation ABs marginal tax rate is 10 percent, and Corporation YZs marginal tax rate is 21 percent.
a: If both corporations are entitled to an additional $6,600 deduction, how much tax savings will the deduction generate for each corporation?
b: If both corporations are entitled to a $6,600 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporations precredit tax exceeds $6,600.)

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