Mrs.Scott received a $12,000 cash payment.If her marginal tax rate is 40%,which of the following statements is true?
A) If only $9,200 of the payment is taxable income,her after-tax cash flow is $9,200.
B) If the payment is not taxable income,her after-tax cash flow is $12,000.
C) If the payment is taxable income,her after-tax cash flow is $4,800.
D) None of the above is true.
Correct Answer:
Verified
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