Which Statement Is Correct

question 27

Multiple Choice

Which statement is correct?

• A)Tax credits reduce tax liability on a dollar-for-dollar basis.
• B)Tax deductions reduce tax liability on a dollar-for-dollar basis.
• C)The benefit of a tax credit depends on the taxpayer's marginal tax rate.
• D)Tax deductions are less valuable for high-income taxpayers than for low-income taxpayers.

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Definitions:

.pst File

A file format used by Microsoft Outlook for storing personal information data such as emails, contacts, and calendar events.

Calendar

A system of organizing days for social, religious, commercial, or administrative purposes, typically consisting of months, weeks, and days.

Email

A method of exchanging digital messages over the Internet.

Navigation Pane

A user interface component that allows users to navigate through different views, folders, or sections of a software application or document.