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:

Constructionist Theories

Theories that suggest reality is not objectively given but is socially constructed through language, cultural practices, and social interactions.

Running Scripts

Executing a series of commands or a program written in scripting language to perform a specific task, often automated and used in software applications and web development.

Social Actors

Individuals or groups who play roles in society, influencing and being influenced by social structures and processes.

Masculinity

A set of attributes, behaviors, and roles associated with boys and men, traditionally emphasizing traits like strength, dominance, and assertiveness.