The reduction in taxes made possible by the annual depreciation deductions equals the depreciation deduction multiplied by the tax rate.

Question

Quizplus · Accepted Answer

This statement is true. The annual depreciation deduction reduces the taxable income, which in turn reduces the amount of taxes owed. The reduction in taxes is equal to the depreciation deduction multiplied by the applicable tax rate.

The Reduction in Taxes Made Possible by the Annual Depreciation