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Sheena Maskell Sheena Maskell
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7 years ago
Judy is considering receiving either $20,000 of current salary or $40,000 of deferred compensation in 12 years. Her current tax rate is 35%, but she expects her tax rate to be 15% 12 years from now. Judy can invest any after-tax current salary at a 6% ATROR. If she receives the deferred compensation, her investment will accumulate to
A) $24,560.
B) $34,000.
C) $36,000.
D) $40,000.
Textbook 
Prentice Hall's Federal Taxation: 2011: Individuals

Prentice Hall's Federal Taxation: 2011: Individuals


Edition: 14th
Authors:
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MsLippyMsLippy
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Sheena M. Author
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#2
7 years ago
Thank you so much
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