Problem: Module 8 Textbook Problem 6 Learning Objectives: - 8-4 Compute the regular tax on corporate taxable income - 8-5 Explain the effect of tax credits on corporate tax liability Corporation AB's marginal tax rate is 15 percent, and Corporation YZ's marginal tax rate is 21 percent. Required: a. If both corporations are entitled to an additional $6,700 deduction, how much tax savings will the deduction generate for each corporation? b. If both corporations are entitled to a $6,700 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporation's precredit tax exceeds $6,700.) Complete this question by entering your answers in the tabs below. If both corporations are entitled to an additional $6,700 deduction, how much tax savings will the deduction generate for each corporation? If both corporations are entitled to a $6,700 tax credit, how much tax savings will the credit generate for each corporation? (Assume that each corporation's precredit tax exceeds $6,700.)