If the depreciation amount is $100,000 and the marginal tax rate is 35%, then the tax shield due to depreciation is:
A) $35,000
B) $100,000
C) $65,000
D) None of the above

Name: If the depreciation amount is $100,000 and the marginal tax rate is 35%, then the tax shield due to depreciation is: A) $35,000 B) $100,000 C) $65,000 D) None of the above
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Question

Quizplus · Accepted Answer

The tax shield due to depreciation is calculated by multiplying the depreciation amount by the marginal tax rate. Therefore, $100,000 * 35% = $35,000.

If the Depreciation Amount Is $100,000 and the Marginal Tax