Alloy Metallurgy Company Management Is Compiling Data for 2012

question 107

Multiple Choice

Alloy Metallurgy Company management is compiling data for 2012.The operational manager has computed that the operating income for 2012 was $260,000 and the net book value of total assets was $1,000,000.The gross book value of total assets was $1,300,000 and the GBV of ROI was 26%.
Required
Compute the accumulated depreciation of total assets for AMC.

• A)$560,000
• B)$260,000
• C)$300,000
• D)$740,000
• E)$440,000

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Definitions:

Expected Utility

The sum of the utilities coming from all possible outcomes of a deal, weighted by the probability of each occurring.

Risk-loving

An inclination to engage in behaviors or decisions that involve exposure to uncertainty, with the potential for higher rewards.

Expected Value

The sum of the payoffs associated with each possible outcome of a situation weighted by its probability of occurring.

Fixed Salary

A pre-determined amount of pay that an employee receives on a regular basis, such as monthly or annually, regardless of performance or hours worked.