Cordet's café has a potential investment of $900,000, which generated a depreciation tax shield of $60,000 and a tax rate of 25% for 2009. how much depreciation expense did cordet's café record during 2009? a)$15,000 b)$80,000 c)$240,000 d)$225,000

The correct answer to the following question is C) $240,000 .

Explanation:

The given information -

Potential investment = $900,000

Depreciation tax shield  = $60,000

Tax rate = 25%

The amount of depreciation expenses recorded by cordet's cafe would be -

Potential investment x Tax rate  + Depreciation tax shield x Tax rate

= $900,000 x 25% + $60,000 x 25%

= $225,000 + $15,000

= $240,000

sketchy  number!?!?!?

Explanation: