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Income tax provision increase

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Reference no: EM132185341

Assume Morley Corporation has a marginal tax rate of 35% and an effective tax rate of 30% due to the exclusion from taxable income of its municipal bond income. If Morley's pretax income increases by $1million, by how much does its income tax provision increase in the following circumstances:

a. the income is related to core operations

b. the income is municipal bond interest

Reference no: EM132185341

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