Suppose That You Are Able to Generate an Annual Depreciation

question 13

Multiple Choice

Suppose that you are able to generate an annual depreciation deduction of $20,000 that would otherwise have been taxed at a 30% rate each year for 7 years. Suppose that your taxes due on sale in year 7 will be $32,000 greater than if the property had not been depreciated. Determine the net benefit of depreciation assuming a discount rate of 6.5%.

• A) $12,315
• B) $20,592
• C) $32,907
• D) $53,499

Recognize the importance of ethics in social science research, including confidentiality, anonymity, and informed consent.

Identify the roles of various data sources and methods in sociological research, including secondary analysis and field methods.

Distinguish between reliability and validity in the context of measurement instruments.

Acknowledge the necessity of voluntary participation in research studies.

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Definitions:

Disbursement of Funds

The process of paying out money from a fund or account to various recipients.

Blanket Lien

A legal claim that gives a lender rights to the borrower's assets as collateral for a loan, covering all of the borrower's assets rather than specific assets.

Disbursement of Funds

Disbursement of funds refers to the payment of money from a fund or account, typically for specific purposes or expenses.

ZBA

Zero Balance Account; a cash management tool in which funds are automatically transferred to maintain a zero balance, eliminating excess balances.