The Local Printing Company Purchases a New Copy Machine for $150,000

question 77

Multiple Choice

The local printing company purchases a new copy machine for $150,000 that reduces the cost of making a color copy by ten cents a copy. The copy machine can be depreciated straight line for seven years and the company is in the 28 percent income tax bracket. The owner believes the machine can be sold for $10,000 at the end of seven years. Approximately how much will this company save on an annual basis in income taxes?

• A) $5,600
• B) $42,000
• C) $39,200
• D) $2,800

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Definitions:

Small Sample Size

In research, refers to a study or experiment that is conducted with a number of participants or cases that is considered insufficient to produce statistically significant results.

Self-Actualization Theory

A concept in psychological theory, particularly in humanistic psychology, positing that the ultimate goal of life is to achieve one's full potential and self-fulfillment.

Existence of Evil

The presence and influence of morally bad or harmful actions, intentions, or circumstances in the world.

Metaneeds

In Abraham Maslow's hierarchy of needs, these are the highest-level needs, involving self-actualization and the realization of one's potential.