Question ID:PT48 S4 Q14 Passage:A new tax law aimed at encouraging the reforestation of cleared land in order to increase the amount of forested land in a particular region offers lumber companies tax incentives for each unit of cleared land they reforest.  One lumber company has accordingly reduced its tax liability by purchasing a large tract of cleared land in the region and reforesting it.  The company paid for the purchase by clearing a larger tract of land in the region, a tract that it had planned to hold in long-term reserve. Stem:If the statements above are true, which one of the following must be true about the new tax law? Correct Answer Choice:DChoice A:It is a failure in encouraging the reforestation of cleared land in the region. Choice B:It will have no immediate effect on the amount of forested land in the region. Choice C:It will ultimately cause lumber companies to plant trees on approximately as much land as they harvest in the region. Choice D:It can provide a motivation for companies to act in a manner contrary to the purpose of the law while taking advantage of the tax incentives. Choice E:It will provide lumber companies with a tax incentive that will ultimately be responsible for a massive decrease in the number of mature forests in the region.