The amount of the depreciation tax shield can be calculated by multiplying the amount of depreciation expense by the tax rate.

Name: The amount of the depreciation tax shield can be calculated by multiplying the amount of depreciation expense by the tax rate.
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Quizplus · Accepted Answer

The depreciation tax shield is the amount of tax savings that result from deducting depreciation expenses on an asset. It can be calculated by multiplying the amount of depreciation expense by the tax rate. Therefore, the statement is true.

The Amount of the Depreciation Tax Shield Can Be Calculated