Amortization tax savings are
I. The savings on taxes because business equipment can be amortized
II. The income tax rate times the allowed amortization for that year
III. Measured in nominal dollars

Question

Quizplus · Accepted Answer

Amortization tax savings refer to the reduction in taxable income due to the amortization of certain assets, such as business equipment. This reduction is calculated by multiplying the allowed amortization for the year by the income tax rate, resulting in savings measured in nominal dollars.

Amortization Tax Savings Are