Use the Table for the Question(s)below

Multiple Choice

Use the table for the question(s) below.
-You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an investment of $40 000 in new equipment. This equipment will be depreciated using the straight-line method over five years. If your firm's marginal corporate tax rate is 30%, then what is the value of the microbrewery's depreciation tax shield in the first year of operation?

A) $26 000
B) $2 400
C) $14 000
D) $5 200