What is the annual depreciation tax shield provided by a piece of equipment that costs $150,000 and is depreciated on a straight-line basis over 10 years? assume a tax rate of 35%?
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I am giving you answer shortcut method
150000× 35% =52500
52500×10= 525000( so here we can see the 10year of depreciation is above the Purchase amount means after two years eight months the amount of equipment is zero)
150000× 35% =52500
52500×10= 525000( so here we can see the 10year of depreciation is above the Purchase amount means after two years eight months the amount of equipment is zero)
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