For a Profitable Firm in the 30% Marginal Tax Bracket

question 117

Multiple Choice

For a profitable firm in the 30% 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 Depreciation tax shield = depreciation x tax rate = $100,000 x .30

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Definitions:

Transmission Electron Microscope

A type of electron microscope that provides highly magnified images by transmitting electrons through a specimen.

Scanning Electron Microscope

A type of electron microscope that produces images of a sample by scanning the surface with a focused beam of electrons.

Light Microscope

An instrument that uses visible light and magnifying lenses to examine small objects not visible to the naked eye.

Phospholipids

A class of lipids that are a major component of all cell membranes, forming lipid bilayers due to their amphipathic properties.