Your Firm Needs a Computerized Line-Boring Machine Which Costs $80,000

question 209

Multiple Choice

Your firm needs a computerized line-boring machine which costs $80,000, and requires $20,000 in maintenance for each year of its three year life. After three years, the salvage value will be zero. The machine falls into the Class 10 equipment category (CCA rate 30%) . Assume a tax rate of 34% and a discount rate of 10%.

Compute the depreciation tax shield for year 3.

• A) $2,016
• B) $3,399
• C) $4,855
• D) $5,222
• E) $5,719

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Definitions:

Network Protocols

Rules and conventions for communication between network devices, enabling the exchange of data over networks.

Network Architectures

The conceptual design and fundamental organization of a network, including its physical components, functional organization, protocols, and data formats.

Network Topologies

The layout or organization of a network's components, including devices and communication paths.

Wireless Network Key

A security password or passphrase used to authenticate and connect devices to a secure wireless network.