The depreciation tax shield is best defined as the: Answer amount of tax that is

Question

The depreciation tax shield is best defined as the: Answer
amount of tax that is saved when an asset is purchased.
tax that is avoided when an asset is sold as salvage.
amount of tax that is due when an asset is sold.
amount of tax that is saved because of the depreciation expense.
amount by which the aftertax depreciation expense lowers net income. The depreciation tax shield is best defined as the: amount of tax that is saved when an asset is purchased. tax that is avoided when an asset is sold as salvage. amount of tax that is due when an asset is sold. amount of tax that is saved because of the depreciation expense. amount by which the aftertax depreciation expense lowers net income.
amount of tax that is saved when an asset is purchased.
tax that is avoided when an asset is sold as salvage.
amount of tax that is due when an asset is sold.
amount of tax that is saved because of the depreciation expense.
amount by which the aftertax depreciation expense lowers net income.

Explanation / Answer

amount of tax that is saved because of the depreciation expense.

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