(Appendix 12A) Depreciation tax savings are I. The savings on taxes because business equipment can be depreciated
II. The income tax rate times the allowed depreciation for that year
III Measured in nominal dollars

Question

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Depreciation tax savings are the reduction in taxes due to the depreciation of business equipment (I), calculated as the income tax rate multiplied by the depreciation amount for that year (II), and are measured in nominal dollars (III).

(Appendix 12A) Depreciation Tax Savings Are I