Which of the following affect the effective corporate tax rate?

Question

Quizplus · Accepted Answer

All of the choices given affect the effective corporate tax rate. Tax-based incentives, such as tax credits or deductions, directly affect the amount of taxes a company has to pay. The local corporate tax rate also directly affects the effective tax rate. The method of determining taxable income, such as the use of accelerated depreciation or inventory accounting methods, can indirectly affect the effective tax rate by influencing the amount of taxable income subject to tax. Therefore, all three choices affect the effective corporate tax rate.

Which of the Following Affect the Effective Corporate Tax Rate