Economics: Principles, Problems, and Policies, 19th Edition

by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.

Published by McGraw-Hill Education

ISBN 10: 0073511447

ISBN 13: 978-0-07351-144-3

Chapter 21 - Health Care - Problems - Page 453: 2a

Answer

${$1,750}$

Work Step by Step

In either case, ${$5,000}$ is added to its total expenses, and with a 35% marginal tax rate, HeadBook's tax liability will be reduced by $5,000\times 0.35={$1,750}$.

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