A Machine Is Purchased on January 1, 2011, for $90,000

question 38

Multiple Choice

A machine is purchased on January 1, 2011, for $90,000. It is expected to have a useful life of five years and a residual value of $5,000. The company closes its books on December 31. Under the double-declining balance method, what is the total amount of depreciation to be expensed during the 2012 fiscal year (year 2 of 5) ?

• A) $21,600
• B) $22,000
• C) $22,400
• D) $34,000

Understand the various harvest options available to founders and the conditions under which each option may be preferred.

Identify the requirements and implications of a management buyout.

Recognize the importance and challenges of establishing a harvest strategy early in the venture-building process.

Appreciate the significance of seeking and considering outside advice when shaping a harvest strategy.

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Definitions:

Economic Capital

The financial assets, resources, and wealth that an individual or organization possesses, enabling economic transactions and investments.

Popular Culture Capital

The accumulation of knowledge, skills, and abilities related to the dominant cultural trends and media of society.

Social Inclusion Capital

Is the accumulation of resources and relationships that enable individuals to participate fully in social, economic, and political life.

Cultural Capital

The non-financial social assets that promote social mobility beyond economic means, including education, intellect, style of speech, and dress.