The ABC Corporation is a large multinational company that has facilities (both manufacturing and distribution) located...

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Accounting

The ABC Corporation is a large multinational company that hasfacilities (both manufacturing and distribution) located in manyU.S. states and in overseas countries. The corporation’slong-serving chief financial officer (CFO) just retired, and hisreplacement is reviewing the corporation’s economic balance sheet.She discovers that the corporation leases many of its distributionfacilities and relies heavily on long-term debt for financing. Shevaguely recalls having heard about implicit taxes and taxclienteles and would like these concepts explained and then appliedto her observations to determine if the corporation is bearingimplicit taxes and whether the corporation is in the rightclientele.

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sol Implict taxes in terribly easy terms suggests that lower tax burden on investments giving lower returns its driven by goverment policy wherever the govt wish poeple to take a position though knowing that the returns from those investments square measure lower thus compensationg See Answer

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