An Asset Used in a 3-Year Project Falls in the Five-Year

question 75

Multiple Choice

An asset used in a 3-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $5.4 million and will be sold for $1.2 million at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset? Table 9.7 Modified ACRS depreciation allowances

• A) $1,075,680
• B) $780,000
• C) $904,320
• D) $1,324,320
• E) $1,187,560

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Canada

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United States

A country comprising 50 states, a federal district, five major self-governing territories, and various possessions, characterized by a federal republic form of government.

Safer Sex

Avoiding sexual behaviours that are considered high risk as well as engaging in various types of nongenital contact.

Passive

Characterized by lack of active response or action, often implying acquiescence or submission.