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    What Is the Amount of the Annual Depreciation Tax Shield
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What Is the Amount of the Annual Depreciation Tax Shield

Question 84

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

Correct Answer:

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