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

question 73

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. What is this company's total tax savings due to depreciation?

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

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Definitions:

Process Manager

A role responsible for overseeing and optimizing the processes within an organization to ensure efficient operation and achievement of business goals.

Standard Deviation

Standard deviation is a statistical measure that indicates the dispersion or variability of a set of data points or values around the mean, used to quantify the amount of variation in a dataset.

Square Root

A mathematical operation that finds the number which, when multiplied by itself, gives the original number.

Quality Management

The practice of overseeing all activities and tasks needed to maintain a desired level of excellence, ensuring that operations meet established standards and improvements are continuously made.