Determine the tax value of forms of relief

Reference no: EM13972869

Throughout the textbook, it has been stated that tax relief can come in several forms. Assuming that the taxpayer in question is in a 28% marginal tax rate bracket and the time value of money is 6%, determine the tax value of the following forms of relief:

a. A $2,000 item of income that is excluded from income

b. A $2,000 expenditure that is deductible in computing taxable income

c. A $2,000 expenditure that is eligible for a 10% tax credit

d. A $2,000 item of income that is deferred for five years (Assume no change in the marginal tax rate.)

Reference no: EM13972869

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