Use the Following Information for Questions

question 80

Multiple Choice

Use the following information for questions:
On January 1, 2011, Mary Co.purchased some equipment that cost $52,800.Freight costs were $300, sales taxes were $6,400, and installation $500.Estimated residual value is $2,000.The company uses a straight-line rate of 10%.
-Accumulated amortization at the end of 2013 would be:

• A)$17,400
• B)$17,700
• C)$17,790
• D)$18,390

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Definitions:

Hurdle Rate

The minimum rate of return on an investment that a company or investor is willing to accept, often used in capital budgeting to evaluate potential investments.

Unrealistic Status Quo

A reference to an impractical or fantasy-based current state of affairs, often used in strategic planning or decision-making to denote assumptions that do not hold.

Expected Time Horizon

The specific duration in which an event is anticipated to occur or a goal is expected to be achieved.

Investment Allowance

A tax incentive that allows businesses to deduct a certain percentage of their investment in qualifying assets from their taxable income.