As of 2012,which One of the Following Statements Concerning Corporate

question 50

Multiple Choice

As of 2012,which one of the following statements concerning corporate income taxes is correct?

• A)The largest corporations have an average tax rate of 39 percent.
• B)The lowest marginal rate is 25 percent.
• C)A firm's tax is computed on an incremental basis.
• D)A firm's marginal tax rate will generally be lower than its average tax rate once the firm's income exceeds $50,000.
• E)When analyzing a new project, the average tax rate should be used.

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Definitions:

Check

A special draft that orders a bank (the drawee) to pay a specified sum of money to the payee from the drawer’s account.

Blank Endorsement

A payee’s or last endorsee’s signature on a negotiable instrument.

Payee's Signature

The signature of the individual or entity entitled to receive payment on a negotiable instrument or document.

Last Endorsee

The most recent party to whom a negotiable instrument, such as a check or promissory note, has been endorsed.