Roger Is Considering Making a $3,000 Investment in a Venture

question 67

Multiple Choice

Roger is considering making a $3,000 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)$900.
• C)$1,100.
• D)$1,200.
• E)None of the above.

---

Definitions:

Belongingness Needs

are psychological needs for interpersonal connections, love, affection, and being part of a group, considered essential for human well-being.

Self-esteem Needs

Refers to the requirement for respect, self-worth, and positive self-regard, considered essential for psychological health and well-being.

Self-transcendence Needs

The need to experience a sense of meaning beyond the individual self, often involving spiritual or altruistic elements.

Self-esteem

A person's own perception of their value or worthiness.