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:

Statistically Significant

A result is statistically significant when it is unlikely to have occurred by chance alone, according to a predefined threshold in a statistical test.

Sample Groups

Selected groups of individuals from a larger population used in research to represent and draw conclusions about the whole population.

Chance Variation

Random fluctuations in data or characteristics within or across populations due to unpredictable causes.

Gender Stereotypes

Widely held beliefs about the characteristics, attributes, and behaviors deemed appropriate for individuals based solely on their gender.