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Business, 23.04.2021 03:30 ronitgoswami

a. As far as the tax code is concerned, HeadBook will increase its expenses by $5,000 in either case. If it pays for the policy, it incurs a $5,000 health care expense. If it raises Vanessa’s salary by $5,000, it incurs $5,000 of salary expense. If HeadBook is profitable and pays corporate profit taxes at a marginal 35 percent rate, by how much will HeadBook’s tax liability be reduced in either case?

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a. As far as the tax code is concerned, HeadBook will increase its expenses by $5,000 in either case...
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