If the depreciation is $20,000 and the marginal tax rate is 35%,calculate the depreciation tax shield.

Name: If the depreciation is $20,000 and the marginal tax rate is 35%,calculate the depreciation tax shield.
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Question

Quizplus · Accepted Answer

The depreciation tax shield is calculated by multiplying the depreciation amount by the marginal tax rate. Using the given figures, we get:

Depreciation tax shield = $20,000 x 35% = $7,000

Therefore, the correct answer is option C.

If the Depreciation Is $20,000 and the Marginal Tax Rate