Winfield Corporation recently purchased equipment that qualifies for a new tax incentive.The new incentive allows Winfield to either expense $100,000 of the cost of the equipment or claim a tax credit of 15% of the cost of the equipment.The cost of the equipment is $200,000.If the credit is elected,the first year depreciation will be $34,000.If Winfield chooses to expense $100,000 of the cost,the first year depreciation will be $20,000 on the remaining cost.Winfield's tax rate is either 34% or 39%.Under what conditions should Winfield elect to take the tax credit? Explain and show any calculations to support your answer.

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The Answer of Winfield Corporation recently purchased equipment that qualifies for a new tax incentive.The new incentive allows Winfield to either expense $100,000 of the cost of the equipment or claim a tax credit of 15% of the cost of the equipment.The cost of the equipment is $200,000.If the credit is elected,the first year depreciation will be $34,000.If Winfield chooses to expense $100,000 of the cost,the first year depreciation will be $20,000 on the remaining cost.Winfield's tax rate is either 34% or 39%.Under what conditions should Winfield elect to take the tax credit? Explain and show any calculations to support your answer.

Winfield Corporation Recently Purchased Equipment That Qualifies for a New