The Arc Corporation has a depreciation expense of $30,000 and is in the 25% marginal tax bracket. The depreciation provides a tax savings of

Question

Quizplus · Accepted Answer

The tax savings from the depreciation expense can be calculated as follows:
Tax savings = depreciation expense x marginal tax rate
Tax savings = $30,000 x 0.25
Tax savings = $7,500
Therefore, the correct answer is choice C.

The Arc Corporation Has a Depreciation Expense of $30,000 and Is