Corporation ABs marginal tax rate is 15 percent, and Corporation YZs marginal tax rate is 35 percent. a. If both corporations are entitled to an additional $5,000 deduction, how much tax savings will the deduction generate for each corporation? b. If both corporations are entitled to a $5,000 tax credit, how much tax savings will the credit generate for each

AB’s marginal tax rate is 15 percent, and YZ’s marginal tax rate is 35 percent.
a. If both corporations are entitled to an additional $5,000 deduction, how much tax savings will the deduction generate for each If both corporations are entitled to a $5,000 tax credit, how much tax savings will the credit generate for each (Assume that each corporation’s pre-credit tax exceeds $5,000.)
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...