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.

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Definitions:

Glutamate Receptors

Proteins located on nerve cells that respond to glutamate, a major neurotransmitter in the brain involved in learning and memory.

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The activity of engaging in physical workouts or activities to improve health, fitness, and overall well-being.

Driving

The controlled operation and movement of a motor vehicle, including cars, motorcycles, trucks, and buses, on roads.