The Asset Section of the January 1, 20X9, Balance Sheet

question 43

Multiple Choice

The asset section of the January 1, 20X9, balance sheet of Junction Company includes a machine which was acquired on January 1, 20X5.The machine's original cost was $500,000, and the estimated life was determined to be 10 years.The estimated economic profit was zero, and the straight-line method of depreciation was chosen.If operating income before depreciation is $95,000, the rate of return on gross book value for 20X9 is _____.

• A)9%
• B)14.4%
• C)18%
• D)35%

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Definitions:

Cognitive Ability

The capacity to perform various mental activities related to learning, problem-solving, decision making, and reasoning.

Control Processes

Psychological mechanisms that regulate thoughts, emotions, and actions, ensuring that behaviors are congruent with goals or norms.

Prefrontal Cortex

The frontmost region of the frontal lobes in the brain, associated with decision making, social behavior, personality, and cognitive planning.

TIA

Transient Ischemic Attack; a temporary period of symptoms similar to those of a stroke.