Roger Is Considering Making a $6,000 Investment in a Venture

question 106

Multiple Choice

Roger is considering making a $6,000 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) $1,800
• C) $2,200
• D) $2,400
• E) None of the above

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Definitions:

Verbal/Linguistic Intelligence

The capacity to effectively use language to express oneself rhetorically or poetically, and the ability to understand the linguistic or semantic nuances.

Mathematical/Logical Intelligence

The capacity to analyze problems logically, carry out mathematical operations, and investigate issues scientifically.

Carl Jung's Typology

A theory proposed by Carl Jung that categorizes people into psychological types based on their preferences in gathering information and making decisions.

Analyzer

A person or tool that examines and evaluates something carefully to understand its components or structure.