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Depreciation as a Tax Shield life and zero residual value is $122,000. The company will use the straight-line method of depreciation. Required: Calculate the amount of income tax that Supreme must pay each year if the asset is and is not purchased. 1. Amount of taxes paid if asset is not purchased is: $ 2a. Amount of depreciation if asset is purchased is: b. Amount of taxes paid if asset is purchased is: 3. What is the amount of the depreciation tax shield