Shortly After Receiving a Traffic Ticket for Speeding,Fred Made Numerous

question 264

Multiple Choice

Shortly after receiving a traffic ticket for speeding,Fred made numerous hostile comments to his wife about the incompetence of women drivers.Fred's comments illustrate most clearly the defense mechanism of

• A) reaction formation.
• B) rationalization.
• C) identification.
• D) displacement.

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Definitions:

Depreciation Tax Shield

The reduction in income tax obligation resulting from the deduction of depreciation expenses.

Tax Rate

The percentage at which an individual or corporation is taxed on their income or profits.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, which evenly spreads the depreciable amount over the expected useful life of the asset.

After-Tax Salvage Value

The net value of a disposed asset after accounting for taxes on its sale.