Income before depreciation and taxes amounts to $200,000. Using straight-line depreciation, the current year's depreciation expense will be $11,000. Using double-declining-balance depreciation, the current year's depreciation expense will be $18,000. Assuming a tax rate of 30%, what is the net cash saved in income taxes by using double-declining-balance depreciation over straight-line depreciation?

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The Answer of Income before depreciation and taxes amounts to $200,000. Using straight-line depreciation, the current year's depreciation expense will be $11,000. Using double-declining-balance depreciation, the current year's depreciation expense will be $18,000. Assuming a tax rate of 30%, what is the net cash saved in income taxes by using double-declining-balance depreciation over straight-line depreciation?

Income Before Depreciation and Taxes Amounts to $200,000