Consider the Following Income Statement What Is the Amount of the Depreciation Tax Shield?
A)$23,607

question 81

Multiple Choice

Consider the following income statement: $$\begin{array} { l r } \text { Sales } & \$ 510,944 \\\text { Costs } & 332,416 \\\text { Depreciation } & 77,300 \\ \text { EBIT } & ? \\\text { Taxes } ( 32 \% ) & ? \\ \text { Net income } & ? \\\hline\end{array}$$ What is the amount of the depreciation tax shield?

• A)$23,607
• B)$24,736
• C)$24,598
• D)$26,211
• E)$26,919

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Definitions:

Bulbourethral Gland

A small gland in males that produces a fluid to lubricate and neutralize the acidity of the urethra prior to ejaculation.

Prostate Gland

A gland in the male reproductive system that surrounds part of the urethra and produces a fluid that forms part of semen.

Seminal Vesicle

Glands that produce a significant portion of the fluid that becomes part of semen, which nourishes and helps transport sperm.

Impotence

A disorder in which a male cannot maintain an erect penis to complete sexual intercourse; also called erectile dysfunction.