Which of the Following Statements About Tax Deferral Is True

question 4

Multiple Choice

Which of the following statements about tax deferral is true?

• A)The value of tax deferral increases as the taxpayer's discount rate for computing NPV decreases.
• B)Tax deferral is not an effective planning strategy if the taxpayer's marginal tax rate is stable over time.
• C)The greater the length of time that the payment of a tax is deferred,the less the tax costs in NPV terms.
• D)Both A and C are true.

---

Definitions:

Intrapersonal Intelligence

The capacity to understand oneself, including one's emotions, motivations, inner states, and self-reflection.

Self-Regulation

is the ability of an individual to manage their thoughts, emotions, and behaviors towards achieving long-term goals, often involving controlling impulses and acting in accordance with personal standards.

Need for Cognition

An individual's tendency to engage in and enjoy activities that require thinking, reasoning, and problem-solving.

Problem Solving

The cognitive process(es) used in transforming starting information into a goal state using specified means of solution.