You Are Considering an Equipment Purchase Costing $167,000 A)1829 Percent
B)18

question 56

Multiple Choice

You are considering an equipment purchase costing $167,000.This equipment will be depreciated straight-line to zero over its three-year life.What is the average accounting return if this equipment produces the following net income? $$\begin{array} { | c | r | } \hline \text { Year } & \text { Net Income } \\\hline 1 & 15,600 \\\hline 2 & 14,200 \\\hline 3 & 13,500 \\\hline\end{array}$$

• A)18.29 percent
• B)18.38 percent
• C)15.67 percent
• D)17.29 percent
• E)16.67 percent

---

Definitions:

Transfer of Exclusive Possession

The act of transferring the right to exclusively occupy or use property or goods to another party.

Car

A wheeled motor vehicle designed for the transportation of people, typically having four tires and powered by an internal combustion engine or electric motor.

Malfunction

The failure of a device, system, or process to operate as intended.

Duty of Care

A legal obligation to adhere to a certain standard of reasonable care while performing acts that could foreseeably harm others.