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:

Standard Deviations

A way of evaluating the extent of dispersion or deviation in a group of values.

Normal Distribution

A probability distribution that is symmetric around its mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Statistical Inference

The process of drawing conclusions about population parameters based on a sample taken from the population.

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent states under a given number of observations.