Roger Is Considering Making a $6,000 Investment in a Venture

question 106

Multiple Choice

Roger is considering making a $6,000 investment in a venture that its promoter promises will generate immediate tax benefits for him. Roger, who does not anticipate itemizing his deductions, is in the 30% marginal income tax bracket. If the investment is of a type that produces a tax credit of 40% of the amount of the expenditure, by how much will Roger's tax liability decline because of the investment?

• A) $0
• B) $1,800
• C) $2,200
• D) $2,400
• E) None of the above

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Definitions:

Active Statements

Phrases that use action verbs to clearly and directly convey who is performing the action, contributing to more engaging and dynamic communication.

Results

The outcomes or conclusions that arise from an action, experiment, or process, indicating its success, failure, or findings.

Action Verbs

Verbs that express a physical or mental action, often used to make sentences more dynamic and persuasive in communication.

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Measurable outcomes derived from an experiment, study, or action, often presented in numerical form.