October 28, 2021
Bookkeeping
bumipalu
Tax Shield: Definition, Formula for Calculation, and Example
Depreciation is allowable to the business entity for the assets used for business, and on personal investments, no depreciation is allowed as expenses. For example, if the organization’s profit depreciation tax shield formula is $ 500,000 before depreciation and depreciation is $ 200,000, and the applicable tax rate is 20%. They can use this to […]