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:

Thomas Paine's Common Sense

Thomas Paine's Common Sense was a pamphlet written in 1776 advocating independence from Great Britain to people in the Thirteen Colonies, sparking widespread support for the American Revolution.

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An individual, often a military officer, skilled in planning and directing large-scale military operations and campaigns.

New York

A state in the northeastern United States, known for its significant cultural, financial, and political influence, as well as being home to New York City, one of the world's major metropolitan areas.

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