What Is the Annual Depreciation Tax Shield for a Profitable

question 99

Multiple Choice

What is the annual depreciation tax shield for a profitable firm in the 30% marginal tax bracket with $100,000 of annual depreciation expense?

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

---

Definitions:

Public Information

Information that is open and accessible to all, often released by governments or organizations to keep the public informed about activities, policies, and developments.

External Environment

All outside factors and forces affecting an organization's performance, including economic, legal, technological, and social conditions.

Raw Facts

Unprocessed and uninterpreted data or information without context or meaning.

Observations

The act of carefully monitoring or examining phenomena, events, or behaviors to gather data or insights.