Depreciation Tax Shield sub-objective 7-4Harris Corp. recently purchased a manufacturing facility fo 1 answer below »
Depreciation Tax Shield sub-objective 7-4Harris Corp. recently purchased a manufacturing facility for $2.5 million.The company will depreciate the facility by recording $125,000 ofdepreciation expense each year for 20 years. Harris Corp. expectsthat its tax rate will be 35 percent in the coming year.Required:What is the tax savings ( that is, the depreciation tax shield) associatedwith the new facility in the coming year? Look over the examples on page 169in your textbook. Start entering your answer in A12.
