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question 134

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Use the following to answer questions : Use the following to answer questions :   -(Table: Production Possibilities for the United States and Canada)  Look at the table Production Possibilities for the United States and Canada. Both nations can produce cars and lumber. In _____, the opportunity cost of _____ cars is _____ board feet of lumber. A) the United States; 1 million; 10 million B) the United States; 10 million; 1 million C) Canada; 1 million; 6 million D) Canada; 1 million; 166,000
-(Table: Production Possibilities for the United States and Canada) Look at the table Production Possibilities for the United States and Canada. Both nations can produce cars and lumber. In _____, the opportunity cost of _____ cars is _____ board feet of lumber.


Definitions:

Sum-Of-The-Years-Digits

An accelerated method of depreciation which totals the digits of an asset's useful life and allocates the cost based on a fraction of those digits.

Scrap Value

The calculated resale value of an asset at the termination of its functional life.

MACRS Tables

Guidelines used in the United States for calculating depreciation deductions for tax purposes under the Modified Accelerated Cost Recovery System.

Allowable Depreciation

The deduction a company can take over the useful life of an asset, as determined by tax laws, to account for wear and tear.

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