Erin has a tax credit of $100 and a marginal tax rate of 28 percent. Erin's income tax liability will be reduced by how much as a result of the credit?
A) $100
B) $128
C) $28
D) $2,800
Answer: A
Explanation: A) Tax credits are a dollar-for-dollar reduction in determining tax liability.
Business
You might also like to view...
If a time series appears to contain a substantial irregular element, we would use a small value for the smoothing constant ? since we do not want to give too much weight to the most recent observation along
Indicate whether the statement is true or false
Business
The IFRS definition of cash equivalents is very similar to that used by _________________
Fill in the blank(s) with correct word
Business