Shaniqua sells life insurance and is considering buying a $60,000 Lexus for business purposes (thus, the expense reduces her taxable income). If Shaniqua is in the 40 percent marginal tax bracket, how much after-tax income will she have to give up in order to enjoy the Lexus?
a. $24,000
b. $36,000
c. $30,000
d. $84,000
B
You might also like to view...
The working-age population can be divided into two groups
A) people in the labor force and people looking for work. B) people in the labor force and people with a job. C) people looking for work and those in the armed forces. D) people in the labor force and people who are not in the labor force.
Demand is price inelastic if a relatively ________ price increase leads to a relatively ________ in the quantity demanded
A) large; small increase B) small; large decrease C) large; small decrease D) small; large increase
If a city has 3293 unemployed people and 73,177 in its labor force, then the city's unemployment rate equals
A) 45.0%. B) 4.5%. C) 4.3%. D) 0.45%.
Economies of scale can
A) result in an increasing cost industry. B) cause input prices to drop. C) prevent the entry of new firms into a market. D) reduce the rate of return which the firm may earn.