For a Profitable Firm in the 35 Percent Marginal Tax

question 75

Multiple Choice

For a profitable firm in the 35 percent marginal tax bracket with $100,000 of annual depreciation expense, the depreciation tax shield would be:

• A)$10,500.
• B)$30,000.
• C)$35,000.
• D)$65,000.

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Definitions:

Overimitation

The tendency of children to imitate not just the necessary actions but also the unnecessary actions when learning from adults or peers.

Adult Actions

Behaviors or decisions made by adults, often with a focus on responsibility, maturity, or the consequences affecting themselves or others.

Time-consuming

Activities or processes that require a considerable or excessive amount of time to complete.

Irreversibility

A cognitive development concept where a child is unable to understand that certain processes can be reversed to return to their original state.