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? Impact on Taxes. Daniel has a marginal tax rate of 33%. He suddenly realizes that he neglected to include a $730.00 tax ded
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Answer: B

A tax-deduction reduces taxable income. Therefore, once such deduction is made the amount of tax should decrease.

This will decrease by the effect of marginal tax rate of 33% on the tax deduction amount.

Tax decreases = tax deduction amount × marginal tax rate

                        = 730 × 33%

                        = $240.90

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