If the tax rate is 40 percent and a company has £400,000 of income, a tax allowable depreciation deduction (WDA) of £80,000 would result in a tax savings of

Name: If the tax rate is 40 percent and a company has £400,000 of income, a tax allowable depreciation deduction (WDA) of £80,000 would result in a tax savings of
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Quizplus · Accepted Answer

The tax savings from the depreciation deduction is calculated by multiplying the deduction amount (£80,000) by the tax rate (40%). Therefore, £80,000 * 40% = £32,000.

If the Tax Rate Is 40 Percent and a Company