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Q: Advanced Corporate Income Tax ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: Advanced Corporate Income Tax
Category: Business and Money > Accounting
Asked by: sljames822-ga
List Price: $3.00
Posted: 28 Sep 2005 07:29 PDT
Expires: 28 Oct 2005 07:29 PDT
Question ID: 573699
What is the tax savings from an additional $100,000 deduction if a
taxable corporation faces a flat 35% marginal tax rate?
Answer  
Subject: Re: Advanced Corporate Income Tax
Answered By: omnivorous-ga on 28 Sep 2005 07:53 PDT
Rated:4 out of 5 stars
 
Sljames822 --

The tax savings from additional deductions (typically changes in
depreciation rules) are the deduction * marginal tax rate or $35,000
here.

Here's an example of it being demonstrated for agricultural equipment:

Utah State University
"Agricultural Tax Issues" (Ward, 2005)
extension.usu.edu/files/publications/multiyear.pdf

Google search strategy: 
"tax savings" "additional depreciation" "marginal tax"

Best regards,

Omnivorous-GA
sljames822-ga rated this answer:4 out of 5 stars and gave an additional tip of: $1.00
Thank you! I understand how to calculate it now...

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