If the Tax Rate Is 40 Percent and a Company

question 40

Multiple Choice

If the tax rate is 40 percent and a company has $800,000 of income, a depreciation deduction of $160,000 would result in a tax savings of

• A)$105,600.
• B)$96,000.
• C)$64,000.
• D)$54,400.

---

Definitions:

Attachment

The emotional bond between an infant and the primary caregiver.

Mary Ainsworth

A developmental psychologist known for her work in early emotional attachment with "The Strange Situation" assessment.

Industry Versus Inferiority

A stage in Erik Erikson's theory of psychosocial development where children develop a sense of competency and skills, or feel inadequate and inferior.

Erikson

Erik H. Erikson, a developmental psychologist and psychoanalyst known for his theory on the social development of human beings and coined the phrase "identity crisis".