16B)

A rancher is planning on purchasing additional raw land. Assume that the marginal tax rate is 15%. Assume further that IRS will allow the investor to depreciate machinery investments using straight-line over 10 years. If the initial cost of an investment is $42,000. What is the annual depreciation expense for tax purposes?

$3,333.33

$4,200

$6,300

$6,666.67

None of the answers are correct