Tori Just Purchased Some Equipment That Belongs in a 35

question 20

Multiple Choice

Tori just purchased some equipment that belongs in a 35% CCA class. The equipment cost $167,401. What will be the book value of the equipment at the end of year three?

• A) $58,349
• B) $61,203
• C) $72,670
• D) $94,730
• E) $119,189

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Definitions:

Market Order

Order that instructs the investor’s broker to obtain the best possible price.

Best Possible Price

Achieving the most favorable cost condition under given circumstances, often in purchasing or selling scenarios.

Federal Reserve Districts

Geographic regions in the United States served by a specific Federal Reserve Bank.

M2

M2 is a measure of money supply that includes all elements of M1 (cash and liquid assets) plus near money, such as savings deposits, money market securities, and other time deposits, which are less liquid but can easily be converted into cash or checking deposits.