Random Company is considering purchasing a machine to create a widget. The following information pertains to the purchase:
Cost of machine $77,000
Useful Life 7 years
Salvage value $7,000
Tax rate 21%
Calculate the tax shield if the company makes the purchase.
A) $2,100.
B) $2,310.
C) $14,700.
D) $16,170.
Correct Answer:
Verified
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