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mr Goodwill [35]
2 years ago
7

What is the depreciation tax shield if EBIT is $600, depreciation is $1,800, and the tax rate is 30 percent

Business
1 answer:
eduard2 years ago
5 0

The depreciation tax shield based on the EBIT, the tax rate and the depreciation is $540.

<h3>How do you find the depreciation tax shield?</h3>

This can be found as:

= Depreciation x Tax rate

Solving gives:

= 1,800 x 30%

= $540

Find out more on the depreciation tax shield at brainly.com/question/24192125.

#SPJ1

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GenaCL600 [577]

Answer:

$3,160

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It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset .

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