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  3. 8. firm m and firm n are related parties. for the

8. Firm M and Firm N are related parties. For the past several years, Firm...

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Accounting

8. Firm M and Firm N are related parties. For the past several years, Firm M's marginal tax rate has been 30 percent, and Firm N's marginal tax rate has been 21 percent Firm M is evaluating a transaction that will generate $10.000 income in each of the next three years. Firm M could restructure the transaction so that the income would be earned by Firm N. Because of the restructuring, the annual income would decrease to $9,000. Should Firm M restructure the transaction?

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