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The annual tax depreciation expense on an asset reduces income taxes by an amount equal to: a) The firm's marginal tax rate times the depreciation

The annual tax depreciation expense on an asset reduces income taxes by an amount equal to:

a) The firm's marginal tax rate times the depreciation deduction.

b) One minus the firm's marginal tax rate times the depreciation amount.

c) One minus the firm's average tax rate times the depreciation amount.

d) The depreciation amount.

e) The firm's average tax rate times the depreciation amount.

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