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Business, 24.06.2021 20:40 maryforney

A company has set up an unfunded deferred compensation plan for its executives. It accrues an expense on its income statement of $5 million per year, but the income tax deduction for these expenses is not taken until deferred compensation is paid out in the future. If the company has a 40% marginal tax rate and a 32% effective tax rate, each year in which the company funds the plan it will recognize a

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