please answer both, thanks

XYZ Healthcare's chief financial officer has calculated that XYZ must pay state and federal income taxes this year at a rate of 25%. Depreciation on equipment purchased for the radiology department will amount to $10,000 this year. Income tax savings for the current year on this equipment will therefore amount to: $2,000. $2,500. $5,000. $5,200. Depreciation results in an income tax savings because the depreciation can be taken as an expense, and that expense reduces the organization's taxable income. True False