Which of the Following Will Tend to Diminish the Benefit

question 28

Multiple Choice

Which of the following will tend to diminish the benefit of the interest tax shield given a progressive tax rate structure? I. A reduction in tax rates.
II) A large tax loss carry forward.
III) A large depreciation tax deduction.
IV) A sizeable increase in taxable income.

• A)I and II only.
• B)I and III only.
• C)II and III only.
• D)I, II, and III only.
• E)I, II, III, and IV.

---

Definitions:

Significant Results

Results obtained from statistical analysis that are unlikely to have occurred due to chance alone, indicating a meaningful difference or relationship.

Relationship Between Variables

The association or correlation existing between two or more variables in research, indicating how one variable changes in relation to another.

Predict

To declare or indicate a likely event or outcome in the future based on current evidence or patterns.

Null Hypothesis

A hypothesis that assumes no significant difference or relationship exists in the population from which a sample is drawn.