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:

Capitalist Countries

Nations where trade, industry, and the means of production are largely or entirely controlled by private owners with the goal of generating profits.

Core

The central or most important part of something, especially the foundational or essential parts that define its nature.

Major Sources

Principal or most important origins or points of supply, typically referring to information, materials, or resources.

Glocalization

A combination of globalization and localization, referring to the adaptation of global products, ideas, and cultural practices to local contexts and markets.