What Is the Marginal Impact on Taxes for a Profitable

question 66

Multiple Choice

What is the marginal impact on taxes for a profitable corporation in the 35% marginal tax bracket that incurs an additional dollar of depreciation expense?

• A) A decrease of 65 cents
• B) A decrease of 35 cents
• C) An increase of 65 cents
• D)Zero impact

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Definitions:

Breach of Condition

The failure to fulfill a condition agreed upon in a contract, potentially rendering the contract void.

Easter Break

A holiday period marking the Christian celebration of Easter, often observed in schools and various sectors as a break from routine activities.

Significant Term

A significant term in a contract is a provision that is essential to the agreement, often impacting the performance, duties, and rights of the parties involved.

Minor Failure

A small or insignificant defect or flaw, especially in a product, system, or mechanism, that does not generally inhibit its intended function.