Ms Teague Incurred a $35,000 Expense

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.