Firm A has a 15 percent marginal tax rate, and Firm Z has a 28 percent marginal

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Firm A has a 15 percent marginal tax rate, and Firm Z has a 28 percent marginal tax rate. Firm A owns a controlling interest in Firm Z. The owners of Firm A decide to incur a $9,500 deductible expense that will benefit both firms. Compute the after-tax cost of the expense assuming that:
a. Firm A incurs the expense.
b. Firm Z incurs the expense.
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