Omar Inc. paid a $24,000 expense, of which only $10,000 was deductible. Which of the following statements is false?

Question

Quizplus · Accepted Answer

The before-tax cost of the expense is indeed $24,000 regardless of the marginal tax rate. However, the after-tax cost of the expense is dependent on the marginal tax rate, as shown in options A and C. Option B is true but not relevant to the question, and option D is redundant with the previous options. Therefore, the false statement is A.

Omar Inc Paid a $24,000 Expense, of Which Only $10,000 Was