If Depreciation Is $100,000 and the Marginal Tax Rate Is

question 75

Multiple Choice

If depreciation is $100,000 and the marginal tax rate is 35%,then the tax shield due to depreciation is:

• A)$35,000
• B)$100,000
• C)$65,000
• D)cannot be determined from the information given

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Definitions:

Z-scores

A measure that describes a value's relationship to the mean of a group of values, expressed in units of standard deviation.

Standard Normal Distribution

A probability distribution that has a mean of 0 and a standard deviation of 1, representing a standardized version of the normal distribution.

Less Than

A mathematical expression indicating that one quantity is smaller than another.

Z-scores

Standardized scores that indicate the number of standard deviations a data point is from the mean.