Broncho Industries Is Considering the Purchase of a $100,000 Machine

question 36

Multiple Choice

Broncho Industries is considering the purchase of a $100,000 machine that is expected to result in a decrease of $15,000 per year in cash expenses.This machine,which has no residual value,has an estimated useful life of 10 years and will be depreciated on a straight-line basis.For this machine,the accounting rate of return would be

• A)10 percent.
• B)15 percent.
• C)30 percent.
• D)35 percent.

---

Definitions:

Restatements

Authoritative texts written by legal scholars that summarize and clarify the principles of common law in the United States on various subjects.

Legal Encyclopedia

A comprehensive set of legal texts that offers explanations on various legal topics and terms.

Case Law

The body of law created by judicial decisions, as opposed to law established by statutes or regulations.

Law Review

An academic journal focusing on legal issues, typically edited by students at a law school, that publishes articles written by legal professionals, scholars, and students.