You Are Considering Adding a Microbrewery onto One of Your

question 43

Multiple Choice

You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an investment of $47,000 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) $3290
• B) $16,450
• C) $6110
• D) $30,550

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Definitions:

Foreign Assignment

A job or project that involves working in a country different from one's home country, often for an extended period.

Adaptability Skills

Skills that enable individuals to adjust to changes and new conditions in their work environment efficiently.

Training

Is a planned attempt by an organization to facilitate employee learning of job-related knowledge, skills, and behaviors.

Expatriate Managers

Employees sent by their companies to work in a foreign country, representing and managing the company's interests abroad.