Assuming a tax rate of 32 percent whats the depreciation


Your firm purchases a business copier that costs $14,000 and requires $3,000 in maintenance for each year of its four-year life. After four years, the copier will be replaced. The copier falls into the MACRS three-year class life category. Use Table 12.8 on page 415 in your textbook for DDB depreciation. Assuming a tax rate of 32 percent, what's the depreciation tax shield for this project in year 4?

A. $421.45

B. $541.24

C. $331.97

D. $521.54

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Financial Management: Assuming a tax rate of 32 percent whats the depreciation
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