If depreciation is $600,000 and the marginal tax rate is 21%, then the tax shield due to depreciation is:

a. $390,000

b. The answer cannot be determined from the information given

c. $126,000

d. $600,000

The incidental effects might include the following, whenever Toyota develops a new engine:

a.

demand for replacement parts only

b.

demand for replacement parts, profits from the sale of repair services, and offer modified or improved versions of the new engine for other uses

c.

demand for replacement parts and profits from the sale of repair services only.

d.

demand for replacement parts and offer modified or improved versions of the new engine for other uses only