Clarity Music Company has a marginal tax rate of 34 percent and an average tax rate of 32 percent this year. It is planning to construct a new recording studio next year. The appropriate tax rate to be applied on the income generated from the new studio is:.
a. the average tax rate.
b. the marginal tax rate.
c. either one.
d. none of these.

The answer is B: The marginal tax rate.

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D. centrally planned economy hope this ! : d