Question 12 1 pts ABC Company recorded 175000 in depreciatio

Question 12 1 pts ABC Company recorded $175,000 in depreciation expense in the current year. What will be the amount of its tax shield of its tax rate is 30%? $227,500 $52,500 $102,941 $122,500

Solution

Answer is $52500

taxshield is the amount of tax save due to depreciation

tax shield amount = depreciation x tax rate

= 175000 x 30%

= $52500