For a person who is in the 35% marginal tax bracket, $1,000 of tax-exempt income is equivalent to $1,350 of income that is subject to tax
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: $1,000 of tax-exempt income is equivalent to $1,538 [($1,000)/(1 – .35)] of income that is subject to taxation. Income before tax of $1,538 yields $1,000 [$1,538 × (1 – .35)] of after-tax income.
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Match the items below with their descriptions:
A. Figure B B. Figure C C. Figure A
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a. loss b. income c. cost d. revenue
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Dept 501 $8,302 Dept 412 $13,425 Dept 387 $28,926 Dept 923-A $14,692
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