If depreciation is $100,000 and the marginal tax rate is 21 percent, then the tax shield due to depreciation is
A)$21,000.
B)$100,000.
C)$65,000.
D)The answer cannot be determined from the information given.

Question

Quizplus · Accepted Answer

The tax shield due to depreciation is calculated as the depreciation amount multiplied by the marginal tax rate. Therefore, $100,000 * 21% = $21,000.

If Depreciation Is $100,000 and the Marginal Tax Rate Is