Please answer with reason for all why the option is correct and why the other options are incorrect Please answer correct otherwise skip it There are two potential investments being considered by John Deere. The first produces $5,000 of tax-exempt income. The second produces income that will be subject to tax at a rate of 20%. Which of the following statements is true regarding Deere's choice? Group of answer choices a) If the second investment generates $7,000 of before-tax income, Casey should choose the second investment. b) Both, if the second investment generates $5,800 of before-tax income, Casey should choose the first investment and if the second investment generates $7,000 of before-tax income, Casey should choose the second investment are true. c) Casey should always choose the first investment because it minimizes tax costs. d) If the second investment generates $5,800 of before-tax income, Casey should choose the first investment.
Please answer with reason for all why the option is correct and why the other options are incorrect
Please answer correct otherwise skip it
There are two potential investments being considered by John Deere. The first produces $5,000 of tax-exempt income. The second produces income that will be subject to tax at a rate of 20%. Which of the following statements is true regarding Deere's choice?
Group of answer choices
a) If the second investment generates $7,000 of before-tax income, Casey should choose the second investment.
b) Both, if the second investment generates $5,800 of before-tax income, Casey should choose the first investment and if the second investment generates $7,000 of before-tax income, Casey should choose the second investment are true.
c) Casey should always choose the first investment because it minimizes tax costs.
d) If the second investment generates $5,800 of before-tax income, Casey should choose the first investment.
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