Question
What is the amount of the annual depreciation tax shield for a firm with a net income of $989,000; depreciation expense of $30,000; and a
What is the amount of the annual depreciation tax shield for a firm with a net income of $989,000; depreciation expense of $30,000; and a marginal tax rate of 28%? (Assume that the half-year rule does not apply.)
a.$268,520
b.$8,400
c.$21,600
d.$7,000
e.$30,000
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
