If Rudy Has a 25% Tax Rate and a 6

question 4

Multiple Choice

If Rudy has a 25% tax rate and a 6% after-tax rate of return, a $30,000 tax deduction in four years will save how much tax in today's dollars? (round present and future value amounts to 3 places)

• A) $30,000.
• B) $7,500.
• C) $23,760.
• D) $5,940.
• E) None of these.

---

Definitions:

Professional Scepticism

An attitude that includes a questioning mind and a critical assessment of audit evidence.

Confidentiality

The obligation to protect sensitive information from unauthorized access or disclosure, ensuring privacy and security.

Competence

The ability or skill of an individual or organization to effectively perform or carry out a particular task or role.

Basic Information System

A foundational structure that collects, stores, manages, and distributes information for the purpose of improving decision-making and coordination.