What Is the Amount of the Annual Depreciation Tax Shield

question 84

Multiple Choice

What is the amount of the annual depreciation tax shield for a firm with $200,000 in net income,$75,000 in depreciation expense,and a 35% marginal tax rate?

• A) $26,250
• B) $43,750
• C) $70,000
• D) $75,000

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Definitions:

Alien and Sedition Acts

A series of laws passed in 1798 that restricted the activities of foreign residents in the United States and limited freedom of speech and of the press.

Defame Government

Defaming the government involves making false and damaging statements against the governmental body or its officials, which may be restricted under certain laws.

Anti-American Organizations

Groups or entities that oppose the United States, its policies, people, or values, often engaging in activities that are counterproductive to U.S. interests.

Immigration

Relocating permanently to a country different from one's birthplace.