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15-05-2023
Business

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(regarding tax benefit) abc inc. borrowed $500 paying $50 annual interest to buy a machine worth $1,000 which is depreciated over 10 years. abc is in the 20% tax bracket. what is the total annual tax savings? (assume the firm is profitable enough to realize all the tax shields). a. $10 b. $20 c. $30 d. $40

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