Blockbuster Is a Video Rental and Retail Chain A)$207,175
B)$270,256
C)$329,750
D)$314,526
E)$455,300

question 59

Multiple Choice

Blockbuster is a video rental and retail chain. Blockbuster is forecasting its financial statements for Year 3. Selected financial information for Years 1 and 2 is provided in the table. In Year 3 Blockbuster is planning to invest $400,000 thousand in CAPEX. The average depreciation rate is 25%. What is the forecasted depreciation expense in Year 3? Selected Financial Information
Blockbuster Inc. ($ '000)
$$\begin{array} { | c | c | c | } \hline & \text { Year 1 } & \text { Year 2 } \\\hline \text { PP\&E } & \$ 1,009,300 & \$ 919,000 \\\hline \text { Depreciation } & & 252,325 \\\hline \text { CAPEX } & & 162,025 \\\hline\end{array}$$

• A)$207,175
• B)$270,256
• C)$329,750
• D)$314,526
• E)$455,300

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Definitions:

Meiosis

A cellular process that cuts the chromosome count by half, thereby generating gametes or spores.

Asexual Reproduction

A mode of reproduction where offspring are produced by a single parent without the involvement of gamete fusion.

Corms

Short, vertical, swollen underground plant stems that function as storage organs to survive winter or dry seasons.

Rhizomes

Underground plant stems capable of producing the shoot and root systems of a new plant, commonly seen in ginger and bamboo.