Tax savings from tax allowable depreciation (i.e. writing down allowances) is calculated as
A) Depreciation deduction * Tax rate.
B) Depreciation deduction * (1 - Tax rate) .
C) Asset cost *MACRS percentage.
D) Depreciation is not a cash flow; therefore, there is no tax savings from depreciation.
Correct Answer:
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Q4: The annual tax deduction for depreciation:
A)is not
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