What Is the Value of the Depreciation Tax Shield Where

question 19

Multiple Choice

What is the value of the depreciation tax shield where a company purchases equipment for $490,000 and depreciates it for tax purposes over its useful life of 7 years? Company tax rate is 21%.

• A)$14,700
• B)$49,000
• C)$34,300
• D)Cannot be determined

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Definitions:

Last-borns

Refers to the youngest child in a family, who may experience different parental expectations, responsibilities, and dynamics compared to their older siblings.

First-borns

Refers to individuals who are the oldest children in their families, often associated with specific personality traits and responsibilities.

Restless Sleepers

Individuals who experience difficulty in achieving or maintaining sleep, often resulting in insufficient sleep quality or duration.

Fetal Position

A curled posture that mimics the position of a fetus in the womb, often adopted in sleep or to minimize discomfort.