CoursHeroTranscribedText: 1 Ajax Corp. has an effective tax rate of 30%. On January 1, Year...
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CoursHeroTranscribedText: 1 Ajax Corp. has an effective tax rate of 30%. On January 1, Year 1, Ajax purchased equipment for $100,000. The equipment has a useful life of 10 years. What amount of current tax benefit will Ajax realize during Year 1 by using the 150% declining balance method of depreciation for tax purposes instead of the straight-line method? A. $1,500 B. $3,000 c. $4,500 OD. $5,000
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