Which of the Following Is a Referent

question 42

Multiple Choice

Which of the following is a referent?

• A)car
• B)animal
• C)ocean
• D)amusement park
• E)Hound of the Baskervilles

---

Definitions:

Depreciation Tax Shield

The reduction in income tax expense realized from the ability to deduct depreciation expenses, thus lowering taxable income.

Marginal Tax Rates

The rate of tax applied to the next dollar of taxable income, which varies depending on income level and filing status in a progressive tax system.

Lease Payments

Regular payments made by a lessee to a lessor for the use of some asset.

After-Tax Lease Payment

The lease payment amount minus any tax savings resulting from deductible lease expenses.