You Are Considering Adding a Microbrewery on to One of Your

question 26

Multiple Choice

You are considering adding a microbrewery on to one of your firm's existing restaurants.This will entail an investment of $40,000 in new equipment.This equipment will be depreciated straight line over five years.If your firm's marginal corporate tax rate is 35%,then what is the value of the microbrewery's depreciation tax shield in the first year of operation?

• A)$2800
• B)$14,000
• C)$5200
• D)$26,000

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Definitions:

Personality Factors

Traits or characteristics that determine an individual's patterns of thought, emotion, and behavior, distinguishing one person from another.

Negative Emotions

Feelings that are considered to be detrimental to one's happiness or psychological health, such as sadness, anger, or fear.

Guilt

An emotional response that occurs when an individual believes they have violated a moral standard or caused harm.

Love

A complex set of emotions and attitudes associated with strong affection, warmth, and deep regard for another person or entity.