BPK Inc. and OPK Inc. are owned by the same family. BPKs marginal tax rate is 25

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BPK Inc. and OPK Inc. are owned by the same family. BPK’s marginal tax rate is 25 percent, and OPK’s marginal tax rate is 40 percent. BPK is about to incur a $72,000 deductible expense that would benefit both corporations. OPK could obtain the same mutual benefit by incurring a $92,500 deductible expense. Which corporation should incur the expense?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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