Bruno's Is Analyzing Two Machines to Determine Which One It

question 69

Multiple Choice

Bruno's is analyzing two machines to determine which one it should purchase.The company requires a rate of return of 14.6 percent and uses straight-line depreciation to a zero book value over a machine's life.Ignore bonus depreciation and taxes.Machine A has a cost of $318,000,annual operating costs of $8,700,and a life of 3 years.Machine B costs $247,000,has annual operating costs of $9,300,and a life of 2 years.Whichever machine is purchased will be replaced at the end of its useful life.Which machine should Bruno's purchase and why?

• A)Machine A; because it will save the company about $13,406 a year
• B)Machine A; because it will save the company about $18,100 a year
• C)Machine B; because it will save the company about $16,510 a year
• D)Machine B; because it will save the company about $11,609 a year
• E)$154,224.08

Identify the characteristics and differences between various types of negotiable instruments (checks, drafts, promissory notes, certificates of deposit).

Recognize the legal effect of electronic processing of checks under the Check 21 Act.

Comprehend the roles and responsibilities of parties involved in negotiable instruments (drawer, drawee, payee, holder in due course).

Distinguish between bearer and order instruments and their implications for transferability and payment.

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Definitions:

Signature Requirement

A legal or regulatory necessity for signatures on documents to validate their authenticity or to indicate agreement to terms.

Statute of Frauds

A rule of law requiring specific kinds of agreements to be documented in writing in order to be legally binding.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, aimed at harmonizing statutes across states.

Sale of Goods

The sale of goods entails the transaction and transfer of ownership of tangible personal property from a seller to a buyer in exchange for a payment.