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Which of the following is the correct definition for depreciation tax shield? A. amount of tax that is saved because of the depreciation expense. B.

Which of the following is the correct definition for depreciation tax shield?

A. amount of tax that is saved because of the depreciation expense.

B. amount of tax that is due when an asset is sold.

C. amount of tax that is saved when an asset is purchased.

D. mount by which the aftertax depreciation expense lowers net income.

E. tax that is avoided when an asset is sold as salvage.

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