Use the table for the question(s)below.
-You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an investment of $40 000 in new equipment. This equipment will be depreciated using the straight-line method over five years. If your firm's marginal corporate tax rate is 30%, then what is the value of the microbrewery's depreciation tax shield in the first year of operation?
A)$26 000
B)$2 400
C)$14 000
D)$5 200

Question

Use the table for the question(s)below. 
-You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an investment of $40 000 in new equipment. This equipment will be depreciated using the straight-line method over five years. If your firm's marginal corporate tax rate is 30%, then what is the value of the microbrewery's depreciation tax shield in the first year of operation?
A)$26 000 
B)$2 400 
C)$14 000 
D)$5 200

Quizplus · Accepted Answer

The Answer of Use the table for the question(s)below. 
-You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an investment of $40 000 in new equipment. This equipment will be depreciated using the straight-line method over five years. If your firm's marginal corporate tax rate is 30%, then what is the value of the microbrewery's depreciation tax shield in the first year of operation?
A)$26 000 
B)$2 400 
C)$14 000 
D)$5 200

Use the Table for the Question(s)below