Wearout Corporation has a shoelace machine with an original cost of $100,000. Depreciation expense for the machine this year is 10% of original cost. The company's tax rate is 21%. What is the depreciation tax shield for this year for this machine? Group of answer choices $21,000 $10,000 $2,100 $7,900

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.