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Asked by lashay

Assuming a tax rate of 35%, depreciation expenses of $1,000,000 will

reduce income by 350,000
reduce taxes by 350,000
reduce taxes by 650,000
have no effect on income or taxes, since depreciation is not a cash expense


17 years ago

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Answered by drwls
It will reduce taxes by $350,000, since it allows you to reduce taxable income by 1 million.
17 years ago
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