What is the value of the microbrewery''s depreciation tax

Reference no: EM13745109

You are considering adding a microbrewery on to one of your firms existing restaurants. This entails an investment of $40,000 in new equipment. This equipment will be depreciated straight line over five years. If your firm's marginal corporate tax rate is 35%, then what is the value of the microbrewery's depreciation tax shield in the first year of operation? A. $26,0000 B. $14,400 C. $5,200 D. $2,8000

Reference no: EM13745109

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