Question: Ms . Teague incurred a $ 3 5 , 0 0 0 expense. If her marginal tax rate is 2 0 % , which of

Ms. Teague incurred a $35,000 expense. If her marginal tax rate is 20%, which of the following statements is true?a) If the expense is nondeductible, Ms. Teague's after-tax cost is zero.b) If the expense is deductible, Ms. Teague's after-tax cost is $28,000.c) If only $17,500 of the expense is deductible, Ms. Teague's after-tax cost is $14,000.d) If the expense is nondeductible, Ms. Teague's after-tax cost is zero and, if the expense is deductible, Ms. Teague's after-tax cost is $28,000.

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