Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

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

Sagot :

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

How do you find the depreciation tax shield?

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 https://brainly.com/question/24192125.

#SPJ1