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Which of the following statements could explain the difference in observed tax rates? Widget Co. and Tools Inc. both operate in the same industry. They

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Which of the following statements could explain the difference in observed tax rates? Widget Co. and Tools Inc. both operate in the same industry. They are capital-intensive companies producing widgets. Below are selected data: Widget uses straight-line depreciation and Tool uses MACRS. Widget uses LIFO and Tool uses FIFO. Tool has foreign subsidiaries in countries with much lower tax rates. Widget has significant amounts of interest income from municipal bonds

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